Last week, the GBP/USD exchange rate revealed a short-term descending channel. During today’s morning, the rate pierced the 200-hour SMA near 1.3120.
From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the currency pair could target the upper channel line located circa 1.3230.
In the meantime, it is likely that the pair could face the resistance area formed by the 55– and 100-hour SMAs, as well the weekly PP in the 1.3140/1.3165 range. Thus, the rate could trade downwards along the lower channel line in the short run.
