Yesterday, the GBP/USD exchange rate tested the resistance formed by the 100-hour moving average at 1.2858. During Tuesday morning, the rate was trading near the given resistance.
It is unlikely, that some upside potential could prevail in the market, as the currency pair is pressured by the 200-hour SMA at 1.2883. The pair could decline lower than the 1.2800 level within the following trading session.
However, if the given resistance hold, the British Pound could extend gains against the US Dollar in the short run. However, it is unlikely that the rate could exceed the Fibonacci 38.20% retracement at 1.2918.
