On Thursday, the GBP/USD exchange rate jumped to the 1.2400 level. During today’s morning, the rate was testing the support formed by the 200-hour SMA at 1.2340.
Note that the currency pair is supported by the 55– and 100-hour moving averages, currently located circa 1.2300. Therefore, it is likely that bulls could prevail in the market. A possible target is the 1.2400 mark.
However, if the given moving averages do not hold, it is likely that the British Pound could decline against the US Dollar within the following trading session. In this case, the rate could get support of the monthly PP at 1.2280.
