At the end of last week, the GBP/USD exchange rate consolidated in the 1.2325 area. During Monday morning, the rate reached the upper line of the short-term ascending channel at 1.2425.
From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the currency pair could target the lower channel line circa 1.2250. Note that the pair could gain support from the 55– and 100-hour SMAs, as well the weekly and monthly PPs in the 1.2306/1.2346 range.
If the given support cluster holds, it is likely that the British Pound could consolidate against the US Dollar in the within the following trading session.
