Yesterday, the GBP/USD exchange rate declined below the 1.2300 level. During Tuesday morning, the rate declined to the support level formed by the monthly S3 at 1.2178.
Note that the currency pair is pressured by the 55-hour SMA near 1.2346. Thus, some downside potential could prevail in the nearest future. In this case the pair could re-test the 2017/2020 low at 1.1977.
However, if the given support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short run. Also, it is unlikely that bears could prevail, and the rate could exceed the monthly S2 at 1.2452.
