Yesterday, the GBP/USD exchange rate reversed south from the upper boundary of the short-term descending channel at the 1.2740 mark. During Thursday’s morning, the rate was testing the support level formed by the 100– and 200-hour SMAs located circa 1.2660.
If the given support holds, it is likely, that some upside potential could prevail in the market, and the currency pair could re-test the upper channel line. Note, that the pair has to surpass the 55-hour SMA, currently located at 1.2693.
On the other hand, the pair could trade sideways between the given moving averages in the short term. Also, it is unlikely, that the rate could decline lower than the 1.2648 mark due to the support of the weekly PP.
