FX.co ★ Trading Signals for GBP/USD on February 27-29, 2024: sell below 1.2695 (4/8 Murray - overbought)

The British pound is trading at 1.2645, above the 21 SMA and 200 EMA, and within an uptrend channel forming since February 13.

Technically, the GBP/USD pair is overbought, but it is trading within a zone that could give it strong bullish momentum. So, the instrument could reach 5/8 Murray around 1.2756 in the next few days.

In case there is a sharp break of the uptrend channel and a consolidation below the 200 EMA on the daily chart, we could expect a change in the trend. Therefore, the British pound could reach 2/8 Murray at 1.2635 and could finally fall towards the psychological level of 1.25 around 1/8 of Murray at 1.2512.

Alternatively, a close above 4/8 Murray located at 1.2695 could be seen as a positive signal for the British pound and GBP/USD could reach 1.2756 and even the psychological level of 1.30 in the short term.

We must monitor whether the GBP/USD pair trades below the 1.2695 area. If this scenario occurs, the pair could come under bearish pressure. Below 1.2640 (200 EMA), the fall could accelerate with the target at 1.2512.

Given that the eagle indicator is giving a strong overbought signal, our strategy will be to sell below 1.2695 (4/8 Murray) with targets 1.2634, 1.2573, and 1.2512.