FX.co ★ Trading Signal for GBP/USD for May 29-30, 2023: buy above 1.2357 (21 SMA - symmetrical triangle )

Early in the American session, the British pound is trading around 1.2346 below the 21 SMA and within a downtrend channel formed since May 8.

On the 4-hour chart, we can see that the GBP/USD pair is under bearish pressure. We expect that in the next few hours, a break of the small symmetrical triangle could occur, which could give us a bearish direction and the instrument could reach the weekly support zone of 1.2281, the level that coincides with the bottom of the bearish channel.

On the other hand, a break of this symmetrical triangle and a consolidation above the 21 SMA around 1.2357 could offer a recovery move for the British pound and it could reach the 200 EMA located at 1.2437. If this scenario comes true, it could be the beginning of a new bullish sequence and GBP/USD could reach 7/8 Murray in the short term, located at 1.2573.

Additionally, since May 22, the Eagle indicator has been giving a positive signal. It means that if the British pound consolidates above 6/8 Murray located at 1.2451, this could encourage a bullish acceleration so that the price could reach 8/8 Murray located at 1.2695.

Our trading plan for the next few hours is to buy the British pound above 1.2357 with targets at 1.2437 and 1.2573. The Eagle indicator is giving a positive signal which supports our bullish strategy.