Yesterday, the GBP/USD exchange rate declined to the lower boundary of the short-term descending channel at 1.2980. During Wednesday morning, the rate was testing the upper channel line.
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 gain support of the weekly S1 at 1.2968.
It is unlikely that a breakout south from the given channel could occur in the nearest future due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3038/1.3072 area.
