At the beginning of May, the GBP/USD exchange rate reversed south from the psychological level at 1.2600. During today’s morning, the rate pierced the 200-hour SMA near 1.2440.
Given that the currency pair is pressured by the 55– and 100-hour SMAs near 1.2480, it is likely that some downside potential could prevail in the market. In this case the pair could decline to the weekly S1 at 1.2360.
However, note that the exchange rate could gain support from the Fibo 50.00% at 1.2418. If the given level holds, it is likely that the British Pound could consolidate against the US Dollar in the short run.
