Yesterday, the GBP/USD exchange rate failed to exceed the resistance level formed by the monthly R2 and the Fibo 38.20% at 1.2918. During Friday morning, the rate continued to test the given resistance.
Note that the currency pair is supported by the 55-hour moving average, currently located at 1.2832. The given SMA could push the pair through the given resistance. A possible upside target is the weekly R2 at 1.3032.
However, if the given resistance holds, it is likely that the British Pound could continue to trade sideways against the US Dollar in the short term. Also, it is unlikely that the rate could drop lower than 1.2760 due to the support formed by the 100-hour SMA.
