During Monday, the GBP/USD exchange rate reached the lower boundary of the short-term descending channel at 1.2528. During today’s morning, the rate was testing the given line.
From a theoretical point of view, it is expected, that a reversal north could occur in the nearest future. But it is unlikely, that, the British Pound could jump higher than 1.2587 due to the resistance of the 55-hour SMA. On the other hand, the currency pair could trade sideways, trying to breach the given channel.
However, if the given channel does not hold, it is likely, that a breakout south could occur within the following trading hours. A potential downside target is the 2018/2019 minimum at 1.2488.
