During the previous trading session, the GBP/USD exchange rate reversed south from the upper boundary of the short-term ascending channel at 1.2205.
During today’s morning, the currency pair declined to the lower channel line at 1.2133. From a theoretical point of view, it is expected, that a reversal north could occur soon. It is unlikely, that the pair could exceed 1.2212 due to the resistance level—the weekly PP.
However, note, that the rate is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1.2146/1.2198 range. Thus, if the given channel does not hold, some downside potential could prevail in the market. A possible target is the 2018/2019 low at 1.2092.
