Early in the American session, the British pound (GBP/USD) is trading around 1.1860 rebounding after reaching the low of 1.1840.

In the next few hours, the US Non-Farm Payrolls data will be released and this could lead to strong volatility. We could expect a drop towards the 1.1830 support zone that will be followed by a bounce.

In case GBP/USD consolidates above 1.1840, we can expect it to continue its bounce and reach daily resistance at 1.1950 and the psychological level of 1.20. Conversely, below 1.1800, we can expect a bearish continuation and the price could reach 4/8 Murray located at 1.1718.

Given that the markets have already priced in the positive US data, this is obvious with GBP/USD falling from 1.2085. A positive NFP data above the consensus could offer a strong technical bounce and the British pound could reach the psychological level of 1.20.

Our trading plan for the next few hours is to buy the British pound above 1.1860 or in case it falls towards 1.1830, we can buy on a rebound, with targets at 1.1962 and 1.2017 (200 EMA). The eagle indicator is giving a positive signal which supports our bullish strategy.