Yesterday, the GBP/USD exchange rate tested the support formed by the weekly and monthly S1s at 1.2290. During Tuesday morning, the rate was trading at 1.2320.
Given that the currency pair is pressured by the 55– and 100-hour SMAs near 1.2370, it is likely that some downside potential could prevail in the market. In this case the pair could decline to the psychological level at 1.2250.
However, if the support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term.
Also, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the Fibo 50.00% and 200-hour SMA near 1.2420.
