At the end of last week, the GBP/USD exchange rate consolidated at 1.2470. During Monday morning, the rate was testing the upper line of the medium-term descending channel.
From a theoretical point of view, it is likely that a reversal south could occur. In this case the currency pair could gain support from the 100– and 200-hour SMAs, as well the Fibo 50.00% and the weekly PP in the 1.1240 area.
Meanwhile, note that the exchange rate is supported by the 55-hour SMA near 1.1280. Thus, a breakout north could occur, and the rate could target the weekly R1 located at 1.2593.
