Yesterday, the GBP/USD exchange rate reversed north from the lower boundary of the medium-term ascending channel at 1.2895. During Thursday morning, the rate was trading at the 1.2940 mark.

From a theoretical point of view, it is likely that the currency pair could continue to extend gains in the short run. Note that that the pair would have to surpass the resistance level formed by the weekly R1 at 1.2956.

However, if the given resistance holds, the exchange rate could trade sideways, supported by the 55– and 100-hour SMAs at 1.2927. Also, it is unlikely that some downside potential could prevail, and the rate could drop lower than the 200-hour SMA at 1.2888.

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