During Monday morning hours, the GBP/USD exchange rate dropped to 1.3250 on possible EU-UK trade talks withdrawal.
On the one hand, it is likely that the currency pair could reverse north in the nearest future. In this case the pair could target the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3380/1.3435 range.
On the other hand, the exchange rate could remain under pressure of weekly S1 at 1.3310. Thus, some downside potential could prevail in the market, and the rate could decline to the weekly S2 at 1.3174.
