Yesterday, the GBP/USD exchange rate touched the 1.2360 level. During Wednesday morning, the rate was testing the support formed by the weekly R1 and the monthly S1 at 1.2290.
If the given support level holds, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could try to surpass the 1.2360 mark.
If the given support does not hold, it is likely that some downside potential could prevail in the market. Note that the rate could gain support from the 55-, 100– and 200-hour SMAs in the 1.2215/1.2260 range.
