On Tuesday, the GBP/USD exchange rate extended gains and reached the psychological level at the 1.2730 mark. During Wednesday’s morning, the rate was testing the upper boundary of the short-term descending channel.
From a theoretical point of view, it is expected, that a reversal south should occur within the following trading hours. In this case, the currency pair could target the support level formed by the 55– and 100-hour SMAs, as well the weekly PP at 1.2705.
However, if the given channel does not hold, it is likely, that a breakout north occurs soon. Note, that the pair has to surpass the resistance level located at the 1.2760 mark.