At the end of last week, the GBP/USD exchange rate dropped to the support provided by the 200-hour SMA in the 1.2235 area. During Monday morning, the rate reversed north.
Note that the currency pair faced the resistance area formed by the 55– and 100-hour SMAs, as well the weekly and monthly PPs and Fibo 50.00% in 1.2311/1.2357.
If the given resistance and support hold, it is likely that the British Pound could consolidate against the US Dollar in the short term.
Otherwise, it is likely that a reversal south could occur in the nearest future, and the exchange rate could decline to the weekly S1 at 1.2161.
