During the previous trading session, the GBP/USD exchange rate declined to the support level—the weekly S1 at 1.2609. During Thursday’s morning, the rate was testing the given support.
Given that the currency is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1.2650/1.2682 range, it is likely, that some downside potential could prevail in the market. The rate could target the psychological level at 1.2580.
However, if the given support holds, it is likely, that the pair could trade sideways between it and the given resistance cluster. Also, note, that the rate could be pressured by the upper boundary of the short-term descending channel in the 1.2620/1.2640 range
