Yesterday, the GBP/USD exchange rate re-tested the support level formed by the Fibo 61.80% and the 100-hour SMA at 1.2646. During Wednesday morning, the rate was trading in the 1.2750 area.
It is likely that the currency pair could gain support from the 55-hour SMA near 1.2710 and extend gains in the nearest future. Note that the pair could face the resistance level—the weekly R1 at 1.2823.
If the given level holds, it is likely that a reversal south could occur, and the rate could re-test the given support level. Otherwise, the pair could reach the monthly R2 at 1.2871.
