At the end of the previous week, the GBP/USD exchange rate tested the upper boundary of the short-term ascending channel at 1.2300. During Monday morning, the rate reversed south.

From a theoretical point of view, it is expected, that the currency pair could continue to trade downwards. In this case, the pair could face the support of the 55-hour SMA and the weekly PP at 1.2220.

Otherwise, it is likely, that the pair could consolidate at the 1.2260/1.2280 level in the nearest future. It is unlikely, that the rate could breach the given channel north due to the resistance of the monthly PP at 1.2330.

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