Yesterday, the GBP/USD exchange rate revealed a short-term descending channel. During Thursday morning, the rate declined below 1.2560.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, and the currency pair could reach the support area formed by the weekly S1, the monthly PP and the 1.2470/1.2500 area.
Additionally, it is unlikely that some upside potential could prevail in the market due to the resistance range formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2565/1.2590 area.
