Yesterday, the GBP/USD exchange rate declined to the support level—the weekly S2 at 1.2281. During Wednesday morning, the rate reversed north from the given support.
Note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs in the 1.2370/1.2475 area. Thus, some downside potential could prevail in the market.
If the given support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short run. Otherwise, it is likely that the pair could decline to the Fibo 38.20% at 1.2190.
