Yesterday, the GBP/USD exchange rate declined to the support formed by the weekly S1 and the monthly R2 in the 1.3100 area. During Wednesday morning, the rate was testing the given support.
If the given support does not hold, it is likely that the British Pound could continue to depreciate against the US Dollar in the short run. In this case the currency pair could gain support of the monthly R1 at 1.3028.
Otherwise, it is likely that a reversal north could occur in the nearest future. Note that in this case the exchange rate would have to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the Fibo 50.00%, the weekly PP and the monthly R3 in the 1.3196/1.3303 area.
