Yesterday, the GBP/USD exchange rate skyrocketed to the resistance level formed by the weekly R1 at 1.29042. During Thursday morning, the rate was testing the given resistance.
Note that the currency pair is supported by the 55-, 100– and 200-hour SMAs, currently located in the 1.2879/1.2906 area. Thus, some upside potential could prevail in the market, and the pair could reach the psychological level at 1.2960.
However, if the given resistance level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term. Also, it is unlikely that bears could prevail, and the rate could drop lower than the weekly PP at 1.2883.
