Yesterday, the GBP/USD exchange rate reached the upper boundary of the medium-term descending channel at 1.2320. During Thursday morning, the rate was testing the given line.
From a theoretical perspective, it is likely that a reversal south could occur in the short run, as the currency pair should target the lower channel line. Note that the pair could gain support at the psychological level at 1.2240.
However, note that the exchange rate is supported by the 55– and 100-hour SMAs, as well the monthly PP circa 1.2280. Thus, the rate could breach the given channel north. A possible upside target is the resistance level formed by the weekly PP and the 200-hour SMA at 1.2356.
