During previous trading session, the GBP/USD exchange rate traded along the upper line of the medium-term ascending channel. During Monday morning, the rate breached the given channel north.
From the one hand, it is likely that some upside potential could prevail in the market. Note that the currency pair would have to exceed the weekly R1 at 1.2893.
If the predetermined resistance holds, it is likely that a reversal south could occur. In this case the pair could gain support from the 55– and 100-hour SMAs, as well the weekly PP and the monthly R1 in the 1.2706/1.2765 area.
