FX.co ★ Trading Signals for GBP/USD on February 7-9, 2024: buy above 1.26 or 1.2570 (21 SMA - 7/8 Murray)

GBP/USD pair is trading around 1.2636, above the 21 SMA, and above 7/8 Murray with a strong technical bounce originating after reaching the low around the psychological level of 1.25.

The British pound could continue its rise in the coming hours but, GBP/USD should consolidate above 1.26 which could give it a new bullish momentum. Hence, the instrument could reach the 200 EMA located at 1.2664 and finally, it could reach the top of the bearish trend channel forming since January 15 at 1.2705.

Additionally, if the British pound breaks sharply above 1.27, it is expected to reach the range zone formed since early January around 1.2760.

In case the British pound makes a technical correction, GBP/USD could consolidate around the support of 1.26 or around 7/8 Murray located at 1.2573. Both levels could give the GBP a new opportunity to resume its bullish cycle. Hence, GBP/USD could reach the target of 1.2695 (8/8 Murray).

The market sentiment report shows that 51.13% of traders are buying the British pound. This statistic is almost balanced which proves that the British pound could trade within the range between 1.2750 and 1.25 in the coming days.

Our strategy for the next few hours will be to buy the British pound above 1.2573 with targets at 1.2664 and 1.2705. The eagle indicator is giving a positive signal which supports our bullish strategy.