GBP/USD Revealed Descending Channel

The USD/GBP exchange rate has revealed a short-term descending channel.

From a theoretical perspective, it is likely that the currency pair could continue to trade downwards within the given channel in the short term. The pair could re-test the lower channel line circa 1.2850.

In the meantime, note that the exchange rate could gain support from the weekly S1 at 1.2911. Thus, the rate could trade sideways, pressured by the 55-hour SMA near 1.2970.