Yesterday, the GBP/USD exchange rate was testing the upper boundary of the short-term descending channel. During Wednesday morning, the rate continued to test the given line.
From a theoretical perspective, it is likely that some downside potential could prevail in the market. In this case the currency pair could target the Fibo 38.20% at 1.2190.
However, note that the exchange rate is supported by the 55-hour SMA near 1.2300. Thus, it is likely that the rate could break the upper channel line, and some upside potential could prevail. However, note that the rate would have to surpass the monthly PP at 1.2345
