Yesterday, the GBP/USD exchange rate raised to the 1.3040 level. During Thursday morning, the rate was testing the upper boundary of the medium-term descending channel.
From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. Note that the currency pair could gain support of the 55– and 100-hour SMAs at 1.3022. A possible downside target is the weekly S1 at 1.2985.
However, if the given channel does not hold, it is likely that a breakout north could occur in the nearest future. In this case the exchange rate could face the resistance level—the weekly PP at 1.3099.
