The British pound (GBP) is testing crucial resistance levels against the US dollar (USD), as the GBP/USD pair nears the upper boundary of a descending channel. Currently, prices are approaching the 1.2650 mark, a critical point that could determine the pair’s next move.
Following recent price action, GBP/USD has been trading in a descending channel, characterized by lower highs and lower lows, suggesting a bearish trend. However, the current test of the channel’s upper boundary signals potential for a breakout or a temporary pullback.
If the pair manages to break through the 1.2650 resistance, it could lead to further gains toward 1.2700 or even 1.2750. On the other hand, failure to break above this level could result in renewed selling pressure, potentially pushing the pair back to recent lows near 1.2500.
Market participants are watching this development closely, as a breakout could signal a shift in sentiment and offer new trading opportunities. The price action near the descending channel’s resistance remains key for traders and analysts in the coming days.
