FX.co ★ Trading Signal for GBP/USD for August 1-2, 2022: sell below 1.2239 (overbought - 4/8 Murray)

Early in the American session, the British pound (GBP/USD) is negotiating at around 1.2239, showing a sign of exhaustion. The odds are that there will be a technical correction in the next few hours towards the bottom of the upward trend channel located at 1.2105.

According to the daily chart, we can observe that since March 9, the British pound has been following the overall downtrend channel. We can also observe that it has formed a secondary channel of the bullish trend from the low of 1.1759.

The eagle indicator is showing signs of the pair being overbought. If the British pound falls and trades below 4/8 Murray, GBP/USD is likely to develop a bearish acceleration towards the 1.2105 area. If this uptrend channel is broken, the currency pair could reach the 21 SMA at the psychological level of 1.2000.

Our trading plan for the next few hours is to sell below 1.2239 with targets at 1.2207 and 1.2105.