Yesterday, the GBP/USD exchange rate traded along the lower line of the medium-term descending channel. During Tuesday morning, the rate was trading at 1.3100.
From a theoretical perspective, it is likely that some upside potential could prevail in the market, and the currency pair could target the upper channel line circa 1.3210.
Meanwhile, note that the pair is pressured by the 55-, 100– and 200-hour SMAs in the 1.3110/1.3130 area. Thus, the rate could continue to decline along the lower channel line.
