GBPUSD bounced off supports: Regression Channel bottom and 200-SMA

The Setup

GBPUSD has created a descending leg inside a linear regression channel, which is pointing slightly upwards.  The pair has bounced near the -2Sigma line that signals the bottom of the channel. We see also that, after piercing the 200-SMA line it soon recovered and is back above it. Additionally, we see that the price has made a kind of morning star figure, with a strong candle that engulfed the last two bearish candlesticks.

A buy-stop order at the high of the last candle in progress could create a movement to the upside, seeking the top of the channel, helped by the sentiment of investors about the relief by the UK government of the confinement British people are enduring due to the COVID-19 pandemic.

Main Levels

Entry stop-buy: 1.2386
     Stop-loss: 1.2295
 Profit Target: 1.2568

Risk and reward:

The risk is 91 pips or $910 per lot, $91 on a mini-lot, and $9.1 on a micro-lot.

The reward is 182 pips, or $1,820 per lot, $182 on a mini-lot and $18.2 on a micro-lot

The Reward-to-risk factor is 2.