Yesterday, the GBP/USD exchange rate reversed south from the upper boundary of the short-term ascending channel. During Friday morning, the rate was testing the support formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2900 area.
From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the currency pair should reach the lower channel line located circa 1.2845.
However, if the given support holds, it is likely that a reversal north could occur in the nearest future. In this case, it is unlikely that the rate could exceed the weekly R1 at 1.2942.
