Early in the European session, the British pound is trading at 1.2693. The instrument is now above 8/8 Murray, above the 21 SMA, and within the uptrend channel formed since November 10.
According to the 4-hour chart, as long as the pound trades above 1.2655, there is upside potential and GBP/USD could reach the next resistance around +1/8 of Murray at 1.2817.
The GBP/USD pair is consolidating after reaching 1.2732. It suggests that the pair is expected to trade in a range between 1.2815 to 1.2650 over the next few days.
On the contrary, in case the British pound breaks below the uptrend channel and consolidates below 1.2650, it will be seen as a sell signal with targets at 1.2573 (7/8 Murray), 1.2451 (6/8 Murray), and the 200 EMA at 1.2405.
Market sentiment is that 41% are buying the British pound and 59% are selling. According to our alternative outlook, GBP/USD might continue to rise in the coming days.
The eagle indicator is reaching the overbought zone which suggests that any technical correction could be seen as a buying opportunity.
Our trading plan for the next hours is to buy the pound above 1.2695 or in case there is a pullback towards 1.2655. It will be considered a buying opportunity.
As long as GPB/USD trades within the uptrend channel, the outlook remains bullish and the target is seen at 1.2820.