Yesterday, the GBP/USD exchange rate breached the short-term descending channel north. During Thursday morning, the rate was testing the resistance formed by the Fibo 50.00% and the weekly R1 at 1.2420.

It is likely that the currency pair could gain support from the 55-, 100– and 200-hour SMAs in the 1.2320 and trade upwards in the short term. In this case the pair could reach the 1.2500 level.

However, if the given resistance holds, it is likely that the British Pound could consolidate against the US Dollar in the short run.

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Also, it is unlikely that bears could prevail in the market, and the exchange rate could decline below the weekly PP at 1.2318.

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