Yesterday, the British Pound appreciated slightly against the US Dollar. During Thursday morning, the GBP/USD exchange rate raised to the 1.2940 level.
Given that the currency pair is supported by the Fibonacci 38.20% retracement at 1.2918, it is likely that some upside potential could prevail in the market. Note that the pair would have to surpass the weekly R1 at 1.2970.
If the given resistance holds, it is likely that the British Pound could trade sideways against the US Dollar in the short term. Also, it is unlikely that bears could prevail, and the pair could drop lower than 1.2880 due to the support formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP.
