On Tuesday morning, the GBP/USD continued to test the resistance of the 1.2760 level. Meanwhile, note that the rate had retraced down to the 55-hour SMA, where it found support for the most recent surge.
In general, the rate is expected to pass the 1.2760 level, as soon as the lower trend line of the junior ascending channel pattern is reached. This event most likely will be consistent with another approach of the support of the 55-hour simple moving average.
On the other hand, if the support levels fail, the rate will have only the support of the 100-hour SMA, which on Tuesday was located at the 1.2694 level.
