On Thursday, the GBP/USD exchange rate consolidated at the 1.2340 level. During today’s morning, the rate surged to the resistance level formed by the weekly R1 and the monthly R2 at 1.2450.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future, and the currency pair could target the support cluster formed by the 55– and 100-hour SMAs, as well the monthly R1 in the 1.2314/1.2344 area.
Otherwise, it is likely that the British Pound could continue to extend gains against the US Dollar. In this case the rate could target area between the psychological levels at 1.2500 and 1.2550.
