The British pound is trading around 1.2744 during the European session, bouncing after having reached the bottom of the bearish trend channel forming since July 15th. GBP/USD is likely to extend its bullish movement. Therefore, the instrument could rise to the 200 EMA located around 1.2820.
On the other hand, if the GBP/USD pair continues its technical rebound, we could expect it to reach 5/8 Murray located at 1.2817. Once this area is reached, it will be seen as an opportunity to sell as this area is considered a strong resistance because the 200 EMA and the 21 SMA converge there.
Our trading plan is to buy and sell within the bearish trend channel pattern. However, a break and consolidation above 1.2817 could change the scenario for the British pound and GBP/USD could return to the psychological level of 1.30 in the short term.