GBP/USD Analysis: Could reverse south

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD

On Wednesday, the GBP/USD exchange rate skyrocketed to the upper boundary of the medium-term descending channel at 1.2720. During Thursday's morning, the rate was testing the given boundary.

From a theoretical point of view, it is expected, that a reversal south should occur within the following trading hours. A possible downside target is the support level formed by the 200-hour SMA and the weekly PP at 1.2644.

However, if the given channel does not hold, a breakout north could occur in the nearest future, and the currency pair could target the resistance level located at 1.2760.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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