During the previous trading session, the GBP/USD exchange rate tested the resistance level formed by the monthly S2 at 1.2452. During Monday morning, the rate was trading neat the given level.
On the one hand, it is likely that some upside potential could prevail in the market, and the currency pair could raise to the resistance formed by the Fibo 38.20% and the monthly S1 in the 1.2600 area.
However, if the monthly S2 holds, it is likely that some downside potential could prevail in the market. Note that the exchage rate could gain support from the monthly S3, the weekly PP, the Fibo 23.60% and the 55-hour SMA in the 1.2100 area.
