During Wednesday morning hours, the GBP/USD exchange rate broke the falling wedge pattern north and jumped to the weekly R1 at 1.3049.
If the predetermined resistance level holds, it is likely that a reversal south could occur, and the currency pair could decline to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2945/1.2975 range.
On the other hand, the exchange rate could gain support from the monthly PP at 1.3028. Thus, some upside potential could continue to prevail in the market, and the rate could target the 1.3100 level.
