Yesterday, the GBP/USD exchange rate declined to the lower boundary of the medium-term ascending channel at 1.2870. During Wednesday morning, the rate was testing the lower channel line.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could re-test the monthly R1 at 1.3096.
However, note that the exchange rate is pressured by the 55– and 100-hour SMAs near 1.3000. Thus, a breakout south could occur. In this case the rate has to surpass the weekly S1 at 1.2844.
