Yesterday, the GBP/USD exchange rate raised to the 1.960 level. During Wednesday morning, the rate was testing the resistance formed by the weekly PP and the 200-hour SMA at 1.2990.
If the given resistance holds, it is likely that a reversal south could occur. In this case the currency pair could gain support of the 55– and 100-hour SMAs, as well the Fibo 38.20% in the 1.2930 area.
If the given support level does not hold, it is likely that the British Pound could continue to appreciate against the US Dollar in the short run. In this case the rate would have to surpass the monthly S1 at 1.3021.
