Yesterday, the GBP/USD exchange rate consolidated in the 1.2930 area. During Tuesday morning, the rate jumped to the 1.2990 level.
From a theoretical perspective, it is likely that the currency pair could reverse south from the upper boundary of the medium-term descending channel at 1.3000. It is unlikely that the pair could decline below the Fibo 38.20% at 1.2918.
On the other hand, the exchange rate could break the upper channel line and re-test the resistance level—the monthly S1 at 1.3021. Also, it is unlikely that the rate could exceed the 1.3040 level in the short term.
