GBP/USD Analysis: tests medium-term channel

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD

Yesterday, the GBP/USD exchange rate raised to the 1.3040 level. During Thursday morning, the rate was testing the upper boundary of the medium-term descending channel.

From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. Note that the currency pair could gain support of the 55– and 100-hour SMAs at 1.3022. A possible downside target is the weekly S1 at 1.2985.

However, if the given channel does not hold, it is likely that a breakout north could occur in the nearest future. In this case the exchange rate could face the resistance level—the weekly PP at 1.3099.

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Dukascopy Bank Team

Dukascopy Bank SA

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