The price of the GBP/USD exchange rate did not change significantly on Wednesday. The most important development during the previous session was a bearish breakout from the prevailing four-day ascending channel.
The Pound moving out of this steep pattern demonstrates that the strong bullish momentum which was guiding the rate since last Friday has allayed considerably. In case the 55-hour and 100-period (4H) SMAs at 1.2870 are breached, it is expected that the Pound continues to edge even lower down to the monthly S2, the weekly PP and the 55-period SMA at 1.2750.
In terms of the upside, it is unlikely that the weekly S3 at 1.30 is breached, given that this level is likewise reinforced by the 200-period SMA.
