Yesterday, the GBP/USD exchange rate traded sideways around the 1.2740 level. During Tuesday’s morning, the rate traded near the 1.2720 mark.
Note, that the rate is squeezed by the monthly S2 and the 55-hour moving average, located at 1.2703 and 1.2743 respectively. If the given resistance and support hold, it is expected, that the currency pair continues to trade sideways.
However, if the given support does not hold, it is expected, that some downside potential could prevail in the market. A possible bearish target is the psychological level at the 1.2650 mark.
