Yesterday, the GBP/USD exchange rate traded sideways in the 1.2320/1.2380 area. During Wednesday morning, the rate continued to consolidate in the given range.
Given that the currency pair is supported by the 55– and 100-hour SMAs, currently located circa 1.2340, it is likely that bulls could prevail in the market. The pair could reach the upper boundary of the short-term ascending channel located circa 1.2420.
However, if the psychological level at 1.2380 holds, it is likely that the British Pound could continue to consolidate against the Greenback in the short run. It is unlikely that the rate could drop lower than 1.2314 due to the support level—the monthly R1.