Yesterday, the GBP/USD exchange rate dropped to the psychological level at 1.2350. During Thursday morning, the rate was testing the support level—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. However, it is unlikely that the British Pound could exceed 1.2392 against the US Dollar due to the resistance level—the weekly S1.
If the given support level does not hold, it is likely that the currency pair could continue to trade downwards in the short term. A possible downside target is the psychological level at 1.2250.
