On Monday, the GBP/USD exchange rate dropped to the lower boundary of the medium-term ascending channel at 1.2940. During today’s morning, the rate was testing the lower channel line.
From a theoretical perspective, a reversal north should occur in the nearest future, and the currency pair could rise to the psychological level at the 1.2980 mark.
If the given channel does not hold, it is likely, that a breakout south could occur in the short run. However, the pair has to surpass the Fibonacci 23.90% retracement at 1.2938 and the weekly S1 1.2923.
Meanwhile, take into account that to properly see the larger pattern, one needs to zoom out the chart and load previous price information that in turn would set properly the ascending pattern’s drawing reference points.
