Yesterday, the GBP/USD exchange rate broke the lower boundary of the descending triangle pattern in the 1.2350 area. During Thursday morning, the rate was testing the 55-hour SMA near 1.2400.
Given that the currency pair is also pressured by the 100– and 200-hour SMAs near 1.2450, it is likely that some downside potential could prevail in the market. In this case the pair could gain support from the monthly S1 at 1.2292.
If the given support level holds, it is likely that short-term consolidation could occur in the market. Otherwise, the exchange rate could target the psychological level at 1.2250.
