Yesterday, the GBP/USD exchange rate reversed south from the resistance level formed by the 55– and 100-hour SMAs at 1.2250. During Thursday morning, the rate was testing the support level formed by the 200-hour SMA at 1.2199.
If the given support level does not hold, it is likely that the British Pound could depreciate against the Greenback in the nearest future. Note that the nearest support level is the weekly S1 at 1.2142.
Otherwise, it is expected that the currency pair could trade sideways between the 200-hour SMA and the weekly PP at 1.2220. It is unlikely, that some upside potential could prevail, and the pair could surpass the 55– and 100-hour SMAs.
