At the end of last week, the GBP/USD exchange rate failed to surpass the 1.2940 level. During Monday morning, the rate was testing the support formed by the 100– and 200-hour SMAs, as well the monthly PP at 1.2898.
Note that the currency pair is pressured by the 55-hour SMA, currently located at 1.2916. Thus, some downside potential could prevail in the market. In this case the pair could gain support of the weekly S1 at 1.2861.
If the given support level holds, it is likely that a reversal north could occur in the nearest future. In this case, the exchange rate could re-test the upper boundary of the short-term ascending channel at 1.2960.