Yesterday, the GBP/USD exchange rate tested the resistance formed by the 100-hour SMA near 1.2840. During Wednesday morning, the rate reversed south.
Note that the currency pair is pressured by the 55-hour SMA near 1.2790. Thus, some downside potential could prevail in the market. In this case the pair could target the weekly S1 at 1.2692.
However, note that the exchange rate could gain support at the psychological level at 1.2750 and continue to consolidate in the short term. It is unlikely that bears could prevail, and the rate could exceed the weekly PP at 1.2856.
