At the end of last week, the GBP/USD exchange rate reversed north from the 1.2520 level. During today’s morning, the rate raised to the 1.2590 mark.
From a theoretical point of view, it is likely that the currency pair could re-test the upper boundary of the short-term descending channel circa 1.2620.
If the given level holds, it is likely that a reversal south could follow. In this case the pair could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2570.
Otherwise, it is likely that the exchange rate could target the resistance area formed by the Fibo 61.80% and the weekly R1 in the 1.2646/1.2664 range.
