At the end of last week, the GBP/USD exchange rate traded sideways near 1.2800. During Monday morning, the rate pierced the monthly S2 at 1.2835.
It is likely that some downside potential could prevail in the market, as the currency pair is pressured by the 55-hour moving average near 1.2850. In this case the pair could gain support from the weekly S1, the monthly S3 and the Fibo 61.80% in the 1.2615/1.2700 range.
However, if the given moving average does not hold, it is likely that the exchange rate could extend gains. Note that the rate would have to exceed the weekly PP and the 100-hour SMA in the 1.2930 area.
