Last week, the GBP/USD exchange rate revealed a medium-term descending channel. During Monday morning, the rate pierced the monthly PP at 1.2346.
Given that the currency pair remains under pressure of the 55-hour SMA near 1.2390, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the weekly S1, is located at 1.2254.
Meanwhile, it is unlikely that a breakout north from the given channel could occur due to the resistance range formed by the 100– and 200-hour SMAs, as well the Fibo 50.00% in the 1.2418/1.2447 area.
