On Tuesday, the GBP/USD exchange rate tried to surpass the 1.3040 level. During today’s morning, the rate declined to the 200-hour SMA near 1.2980.
If the given support holds, it is likely that a reversal north could occur in the nearest future. Note that the currency pair would have to surpass the resistance formed by the 55– and 100-hour SMAs, as well the monthly S1 in the 1.3020 area.
However, if the 200-hour SMA does not hold, it is likely that some downside potential could prevail in the market in the nearest future. Note that the nearest support level—the weekly S1, is located only at 1.2924.
