Yesterday, the GBP/USD exchange rate reached the resistance formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% and the monthly R2 circa 1.2910. During Thursday morning, the rate was testing the given resistance.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. However, note that the currency pair could gain support of the weekly PP, as well the 200-hour SMA at 1.2828.
If the given support level holds, the British Pound could trade sideways against the US Dollar within the following trading session. Otherwise, the exchange rate could drop lower than the 1.2800 level.
