On Wednesday, the GBP/USD exchange rate skyrocketed to the upper boundary of the medium-term descending channel at 1.2720. During Thursday’s morning, the rate was testing the given boundary.
From a theoretical point of view, it is expected, that a reversal south should occur within the following trading hours. A possible downside target is the support level formed by the 200-hour SMA and the weekly PP at 1.2644.
However, if the given channel does not hold, a breakout north could occur in the nearest future, and the currency pair could target the resistance level located at 1.2760.