Yesterday, the GBP/USD exchange rate tried to surpass the weekly PP at the 1.2487 mark. During Wednesday morning, the rate was testing the lower boundary of the short-term ascending channel.
Given that the currency pair is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1.2455/1.2477 area, it is likely that a breakout south could occur in the nearest future. Note that the nearest support level—the weekly S1, is located at 1.2392.
If the given channel holds, it is likely that the exchange rate could re-test the weekly PP. If the given level does not hold, the British Pound could exceed the 1.2500 level against the Greenback.
