The British pound is trading around 1.3406, rebounding after hitting the lower band of the uptrend channel formed since May 15 and trading above the 61.8% Fibonacci retracement level.
The British pound managed to close the gap left on May 22 around 1.3438. However, downward pressure drove it to a low of 1.3368. Since then, we have observed a technical rebound and believe GBP/USD could continue rising in the coming days.
The British pound could resume its uptrend in the coming hours, so we will look for buying opportunities if GBP/USD consolidates above the 61.8% Fibonacci level around 1.3385.
At current price levels, we could continue buying with targets at the 200 EMA around 1.3466. GBP/USD could even rise to reach the upper band of the uptrend channel around 1.3515.
If bearish momentum prevails and the British pound falls below the 61.8% Fibonacci level and consolidates below this zone, it is likely to reach the 5/8 Murray level around 1.3305.
Around the 5/8 Murray level could be considered a zone for a technical bounce, as the instrument may be forming a double-bottom pattern, and we could view this as a buying opportunity.