On Tuesday, the GBP/USD exchange rate tried to surpass the psychological level at 1.2660. During today’s morning, the rate tumbled to the 1.2640 level.
From a theoretical point of view, it is expected, that the currency pair could maintain its decline, as the pair is trading within the short-term descending channel. A possible downside target is the weekly S1 at 1.2609.
It is unlikely, that some upside potential could prevail in the market, as the pair is pressured by the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and the monthly S2 in the 1.2676/1.2712 range.
