FX.co ★ Trading Signal for GBP/USD for May 11-12, 2023: sell below 1.2622 (21 SMA - 7/8 Murray)

Early in the American session, the GBP/USD pair is trading around 1.2599 below the 21 SMA and within an uptrend channel formed since April 13.

During the European session, the British pound broke sharply through the 21 SMA (1.2622) and is now trading around 1.2599. We expect that in the next few hours, the British pound will continue to fall until it reaches 7/8 Murray located at 1.2573.

With a break below this level, we could expect the decline to accelerate and GBP/USD could reach the bottom of the uptrend channel around 1.25 and finally could reach the 200 EMA located at 1.2454.

Our trading plan for the next few hours is to sell the British pound below 1.2622, with targets at 1.2573 and 1.2500. The eagle indicator is giving a bearish signal which supports our strategy.