Yesterday, the GBP/USD exchange rate tried to surpass the resistance level at 1.2760. During Wednesday morning, the rate was still testing the given resistance.
It is unlikely that some downside potential could prevail in the market, as the currency pair is supported by the 55– and 100-hour SMAs, currently located at 1.2661 and 1.2581 respectively.
If the given resistance holds, it is likely that the British Pound could continue to trade sideways against the Greenback in the short run. Otherwise, it is likely that bulls could prevail in the market. A possible upside target is the resistance level formed by the monthly R2 and the Fibo 38.20% at 1.2918.
