At the end of last week, the GBP/USD exchange rate failed to exceed the 200-hour SMA near 1.2450. During Monday morning, the rate touched 1.2350.
It is likely that some downside potential could prevail in the market, as the currency pair is pressured by the 55– and 100-hour SMAs, as well the weekly PP in the 1.2390 area. Note that the rate could gain support from the weekly and monthly S1 at 1.2290.
If the given support level holds, it is likely that a reversal north could follow Otherwise, it is likely that the exchange rate could decline below the psychological level at 1.2250.
