During Monday, the GBP/USD exchange rate tried to breach the medium-term ascending channel south. During today’s morning, the rate continued to test the lower channel line at 1.2425.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. A possible upside target is the weekly PP located at the 1.2487 mark. In this case the rate has to surpass the monthly R2 at 1.2459.
However, note that the currency pair is pressured by the 55-, 100- and 200-hour SMAs. Thus, if the given trend does not hold, some downside potential could prevail in the market, and the pair could decline to the weekly S1 at 1.2392.
