Yesterday, the GBP/USD exchange rate failed to surpass the psychological level at 1.2840. During Wednesday morning, the rate was trading near the upper boundary of the short-term descending channel.
From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. In this case the currency pair could reach the psychological level at 1.2820.
If the given channel does not hold, a breakout north could occur in the short term. However, note that the pair would have to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2864/1.2903 range.
