FX.co ★ Trading Signals for GBP/USD for July 29-31, 2024: buy above 1.2806 (200 EMA - 5/8 Murray)

Early in the American session, the British pound is trading around 1.2842, above the 200 EMA, and within the downtrend channel forming since July 17. During the European session, GBP/USD reached a low of 1.2806. This level coincided with the support of 5/8 Murray and the 200 EMA. The instrument found a very strong bottom. From that area, the GBP is bouncing.

If GBP/USD settles above 1.2806 or 1.2817, the outlook could remain positive and the British pound could reach the 21 SMA located at 1.2878 in the next few hours, a level that coincides with the top of the downtrend channel.

Additionally, in case of a sharp breakout of the downtrend channel and if the British pound consolidates above 1.2878, the outlook could change, which would mean a change in trend. Then, GBP/USD could reach 1.2939, even the psychological level of 1.30 and finally, Murray 7/8 at 1.3064.

The eagle indicator is in the oversold zone. Therefore, we believe a technical rebound could occur in the next few hours and we will look for opportunities to buy above 1.2800.