On Wednesday, the GBP/USD exchange rate traded sideways, squeezed by the 100– and 200-hour SMAs at 1.2835 and 1.2853. During today’s morning, the rate continued to trade within the given area.
If the given moving averages hold, it is likely that the British Pound could continue to consolidate against the US Dollar within the following trading session.
If the given support does not hold, it is likely that the currency pair could decline in the short term. A possible downside target is the psychological level at 1.2800.
It is unlikely that bulls could prevail in the market, and the exchange rate could exceed the weekly R1 at the 1.2895 mark.
