During the previous trading session, the GBP/USD exchange rate reversed south from the upper boundary of the short-term descending channel at 1.2730. During Monday’s morning, the rate was testing the support formed by the weekly PP at 1.2648.
If the given support level holds, it is likely, that a reversal north could occur in the nearest future. However, it is unlikely, that the British Pound could exceed the 1.2700 level due to the resistance formed by the 55-, 100– and 200-hour SMAs.
Otherwise, it is expected, that the currency pair could maintain its decline. A possible downside target is the lower channel line located in the 1.2600/1.2620 range
