FX.co ★ Trading Signals for GBP/USD on December 7-11, 2023: buy above 1.2558 (7/8 Murray - 21 SMA)

Early in the American session, the British pound (GBP/USD) is trading around 1.2558 within an uptrend channel formed since October 25. According to the daily chart, it is located around the 7/8 Murray, around the 21 SMA located at 1.2568, and above the psychological level of 1.2500.

As the British pound is trading within the uptrend channel, a bounce above 1.2540 is expected in the coming hours. GBP/USD could gain momentum if it consolidates above 1.2573.

The British pound could reach the 8/8 Murray at 1.2695 and could even exceed this level and reach + 1/8 Murray at 1.2817.

Market sentiment shows that 50.53% of traders are selling the British pound. According to our contrarian strategy, if this number increases, we could expect a recovery of the British pound and GBP/USD could return to 1.28.

In view that the pound is located in a key area, we can buy at current price levels or wait for a break of 1.2568 to buy with targets at 1.2638 and 1.2695. The eagle indicator on the H1 and H4 charts is giving oversold signals which supports our bullish strategy.