Yesterday, the GBP/USD exchange rate consolidated in the 1.2250 area. During Thursday morning, the rate re-tested the support level—the Fibo 38.20% at 1.2190.
Note that the currency pair is pressured by the 55– and 200-hour SMAs near 1.2240. Thus, some downside potential could prevail, and the pair could decline below 1.2160.
However, if the given support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short run.
Also, it is unlikely that bulls could prevail, and the rate could exceed the monthly S1 at 1.2292.
