Yesterday, the GBP/USD exchange rate declined to the support level – the weekly S1 at 1.2842. During Thursday morning, the rate was testing the upper boundary of the short-term descending channel at 1.2863.
It is unlikely that some upside potential could prevail in the market, as the currency pair is pressured by the 55-, 100- and 200-hour SMAs, located in the 1.2875/1.2899 area.
If the given support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term. Otherwise, the pair could continue to decline. A possible downside target is the 1.2800/1.2820 area.
