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


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.

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