Yesterday, the GBP/USD exchange rate tried to surpass the psychological level at 1.2900. During Friday morning, the rate was testing the support level – the weekly PP at 1.2871.
If the give support level holds, it is likely that a reversal north could occur in the nearest future. However, it is unlikely that the currency pair could exceed 1.2920 due to the resistance formed by the 55- and 100-hour SMAs, as well the Fibo 38.20%.
However, if the given support does not hold, it is likely that the British Pound could depreciate against the US Dollar. A possible downside target is the weekly S1 located at the 1.2823 mark.
