The British pound is trading around 1.3241, above the 21-day SMA and showing positive momentum. Earlier this week, the British pound hit a low of 1.3180, a level that coincided with the 4/8 Murray line; from that level, the GBP staged a strong technical rebound.
If the price remains above 1.32 in the coming hours, this could be seen as an opportunity to continue buying, with targets in the coming days at the 5/8 Murray line around 1.3305 and finally at the 200 EMA around 1.3346.
According to the H4 chart, the British pound is trading within a bearish trend channel formed on March 20, so the pound is expected to face difficulties in breaking above the 1.3280 zone. If the GBP/USD pair attempts to break this zone but fails, it could be seen as an opportunity to open short positions.
If the price falls toward the key 4/8 Murray support level—which has previously provided strong support for the British pound—and consolidates below this zone, we could expect the downtrend to continue, with sterling potentially reaching the 3/8 Murray level around 1.3080 and possibly even the psychological level of 1.3000.
At current price levels, we can look for opportunities to buy the British pound above 1.32, with targets at 1.3270. A decisive break above the 5/8 Murray level could support a recovery, with the British pound potentially reaching the 6/8 Murray level.