On Tuesday, the GBP/USD exchange rate jumped to the 1.2100 level. During today’s morning, the rate was testing the resistance level formed by the monthly PP and the 200-hour SMA at 1.2165.
If the given resistance holds, it is likely that the currency pair could reverse south in the nearest future. However, note that the pair would have to surpass the support cluster formed by the 55– and 100-hour SMAs, as well the weekly S1 in the 1.2079/1.2125 range.
If the given resistance does not hold, the British Pound could continue to appreciate against the US Dollar in the short run. In this case the rate could target the weekly R1 located at 1.2272.
