Yesterday, the GBP/USD exchange rate traded sideways around the 1.2890 level. During today’s morning, the rate was testing the upper boundary of the short-term descending channel at 1.2892.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future. In this case the currency pair could target the weekly S1 located at the 1.2842 mark.
On the other hand, the pair could maintain its consolidation in the short term. Also, it is unlikely that bulls could prevail in the market, and the rate could exceed the Fibo 38.20% at 1.2918.
