On Thursday, the GBP/USD exchange rate declined to the 1.2800/1.2820 area. During today's morning, the rate was trading at the given area.
From a theoretical point of view, it is likely that the British Pound could depreciate against the US Dollar within the short-term descending channel in the nearest future. A possible downside target is the psychological level at 1.2780.
It is unlikely that bulls could prevail in the market, and the currency pair could trade upwards in the nearest future due to the resistance cluster formed by the 55-, 100- and 200-hour SMAs, as well the weekly S1 in the 1.2842/1.2889 range.
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