Yesterday, the GBP/USD exchange rate failed to breach the short-term ascending channel north. During Tuesday morning, the rate reversed south.
From a theoretical point of view, it is likely that the British Pound could decline against the Greenback in the nearest future. In this case, the currency pair could reach the 1.2820/1.2840 area.
On the other hand, the British Pound could consolidate against the US Dollar in the 1.2860 area within the following trading session. Also, it is unlikely that the exchange rate could breach the given channel north, as it is pressured by the 55-, 100– and 200-hour SMAs.
