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.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.