At the end of last week, the GBP/USD exchange rate tried to surpass the resistance level formed by the 100-hour SMA near 1.2520. During Monday morning, the rate was testing the resistance formed by the 55– and 200-hour SMAs near 1.2470.
If the 55– and 200-hour SMAs hold, it is likely that some downside potential could prevail in the market. In this case the currency pair could gain support from the Fibo 50.00% and the weekly PP in the 1.2400 area.
If the given support holds, the British Pound could consolidate against the US Dollar in the short run. Otherwise, the rate could decline to the monthly PP at 1.2345.
