Yesterday, the GBP/USD exchange rate raised to the upper boundary of the short-term descending channel circa 1.3200. During Thursday morning, the rate was testing the given line.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the currency pair could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3135/1.3160 area.
If the given channel does not hold, it is likely that the exchange rate could re-test the 2020 high located at the 1.3258 mark.
