As apparent on the chart, the GBP/USD exchange rate has exceeded the 1.2500 level. During today’s morning, the rate was testing the resistance level—the weekly R1 at 1.2576.
If the given resistance holds, it is likely that the currency pair could reverse south in the nearest future. In this case it is unlikely that the pair could drop below the Fibo 50.00% at 1.2418.
On the other hand, the exchange rate could gain support from the 55-hour SMA near 1.2500 and continue to extend gains in the short run. Note that the rate would face the resistance –the Fibo 61.80% at 1.2646.
However, if the given resistance holds, the British Pound could trade sideways against the US Dollar in the short term.
