Early in the American session, the British Pound (GBP/USD) is trading around 1.2929 below 6/8 Murray within the downtrend channel forming since July 17.

The H4 chart shows a consolidation of the GBP/USD pair. As long the instrument trades below 1.2935, the bearish movement is likely to go on in the next few days provided that the price settles below this area.

If the British pound breaks the bearish trend channel sharply and consolidates above 6/8 Murray and above 21 SMA, the outlook could change to bullish. So, the British pound could reach the psychological level of 1.30 and even 7/8 of Murray located at 1.3061.

A break below 1.29 will be seen as a signal to sell, with targets at 1.2855 and 1.2817, an area that coincides with the 5/8 Murray 200 EMA.

The eagle indicator is showing a negative signal. Therefore, we believe that the British pound still has a way to continue falling below 6/8 Murray. Thus, our outlook remains bearish.