At the end of last week, the GBP/USD exchange rate reversed north from the lower boundary of the short-term descending channel at 1.2280. During Monday morning, the rate was testing the 55-hour SMA at 1.2320.
If the given moving average holds, it is likely that the British Pound could decline against the Greenback in the short run. A possible downside target is the 1.2260/1.2280 area.
Otherwise, the currency pair could trade sideways near the given resistance in the nearest future. It is unlikely, that bulls could prevail in the market, and the pair could exceed the 1.2370 mark due to the resistance formed by the 100-hour SMA and the weekly PP.
