At the end of last week, the GBP/USD exchange rate traded sideways in the 1.2350 area. During Monday morning, the rate raised to the 1.2450 level.
It is likely that the currency pair could gain support from the 200-hour SMA and the Fibo 50.00% at 1.2418 and trade upwards in the short term. In this case the pair could face the resistance level—the weekly R1 at 1.2500.
If the given resistance level holds, it is likely that the British Pound could trade sideways against the US Dollar within the following trading session.
Also, it is unlikely that bears could prevail in the market, and the exchange rate could decline below 1.2340/1.2374 range due to the support cluster formed by the 55– and 100-hour SMAs, as well the weekly and monthly PPs.
