On Monday, the GBP/USD exchange rate traded sideways around the 1.2300 level. During today’s morning, the rate dropped to the support level—the weekly S1 at 1.2228.
If the given level does not hold, it is likely that the British Pound could continue to depreciate against the Greenback in the short term. Important level to look out for is the 1.2200 level.
Otherwise, the currency pair could make a reversal north in the nearest future. In this case the pair would have to surpass the resistance cluster formed by the weekly and monthly PPs, as well the 55-, 100– and 200-hour SMAs in the 1.2280/1.2321 area.
