On Tuesday, the GBP/USD exchange rate breached the medium-term ascending channel north. As apparent on the chart, the rate reversed south from the 1.2540 mark.
It is likely that some downside potential could prevail in the market, as the currency pair could be pressured by the 55– and 200-hour SMAs in the 1.2480 area. In this case the pair could target the monthly PP at 1.2346.
Meanwhile, note that the pair could gain support from the Fibo 50.00% at 1.2418. If the given level holds, it is likely that the British Pound could trade sideways against the US Dollar in the short term.
