On Monday, the GBP/USD exchange rate traded sideways at the 1.2350 level. During today’s morning, the rate was testing the support level formed by the 55-hour SMA and the monthly R1 at 1.2314. If the given support level holds, it is likely that a reversal north could occur in the nearest future. A possible upside target could be the resistance level formed by the weekly R1 and the monthly R2 at 1.2450.
On the other hand, the currency pair could continue to consolidate near the given support in the short term. Also, it is unlikely that some downside potential could occur due to the support of the 100-hour SMA at 1.2290.
