Yesterday, the GBP/USD exchange rate continued to trade sideways in the 1.2400 area. During Friday morning, the rate pierced the support level—the monthly PP at 1.2345.
It is likely that the currency pair could be pushed down by the 55– and 100-hour moving averages. However, note that the pair could gain support from the weekly PP, the Fibo 38.20% and the 200-hour SMA in the 1.2100/1.2200 area.
If the given support cluster holds, it is likely that the British Pound could consolidate against the US Dollar. Otherwise, the exchange rate could target the Fibo 23.60% at 1.1814.
