The British pound is trading around 1.2452, bouncing after having reached the low of 1.2285 and is now approaching the psychological level of 1.25.

In case GBP/USD consolidates above 2/8 Murray and above the 21 SMA, the outlook will remain positive and we could expect the price to reach the 200 EMA located at 1.2566. It could even reach the top of the downtrend channel around 1.2580.

A technical correction could allow the bulls to resume buying. If the GBP/USD pair trades around 1.2400 or above this level, we could look for opportunities to buy with targets at 1.2566 and 7/8 Murray of 1.2573.

The eagle indicator has been giving a positive signal since April 18. Therefore, we believe that any pullback will be seen as a signal to buy.

In case the GBP/USD pair falls below 5/8 Murray, our bullish outlook would be invalidated and the GBP could resume the decline and reach 4/8 Murray located at 1.2207.