During the previous trading session, the GBP/USD exchange rate raised to the 1.2350 level. During Friday morning, the rate was testing the support level formed by the monthly R1 at 1.2314.
Note that the currency pair is supported by the 55-, 100– and 200-hour SMAs, currently located in the 1.2172/1.2258 range. Thus, it is likely that some upside potential could prevail in the market. In this case, the pair has to surpass the weekly R2 at 1.2376.
If the given resistance level holds, it is likely that the British Pound could trade sideways against the US Dollar. It is unlikely that bears could prevail, and the rate could drop lower than the weekly PP at 1.2206.
