At the end of last week, the GBP/USD exchange rate breached the short-term ascending channel north and renewed the 2020 high at 1.3360. During Monday morning, the rate reversed south.
From the one hand, it is likely that some downside potential could prevail in the market. Note that the currency pair could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP and S1 in the 1.3270/1.3152 area.
From the other hand, it is likely that the exchange rate could gain support at the 1.3300 level. Thus, it is likely that the rate could trade sideways in the short term.
