GBP/USD might sharp losses

Dukascopy Bank Team Dukascopy Bank SA

Yesterday, the GBP/USD exchange rate reversed south from the upper boundary of the short-term descending channel circa 1.2740 and dropped to the 200-hour SMA.

On the one hand, the currency pair could maintain its decline, as the British Pound is pressured by the political situation in the UK. A potential downside target is the weekly S1 located at the 1.2646 mark.

On the other hand, a reversal north from the psychological level at 1.2670 could occur within the following trading hours. However, it is unlikely, that the pair could exceed the 1.2696/1.2708 range due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP

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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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