Yesterday, the GBP/USD exchange rate traded sideways around the weekly S1 at 1.2228. During Thursday morning, the rate was testing the resistance level formed by the 100– and 200-hour SMAs, as well the monthly PP at 1.2228.
If the given resistance level holds, it is likely that some downside potential could prevail in the market in the short run. In this case the currency pair could gain support of the 55-hour SMA at 1.2230.
If the given support holds, it is likely that the British Pound could consolidate against the US Dollar within the following trading session. Otherwise, the exchange rate could re-test the psychological level at 1.2200.
