Yesterday, the GBP/USD exchange rate failed to exceed the 1.2750 level. During Tuesday morning, the rate was testing the support formed by the 100-hour SMA and the Fibo 61.80% at 1.2646.
If the given support level holds, it is likely that a reversal north could occur in the nearest future, and the currency pair could re-test the 1.2750 level. Meanwhile, note that the pair would have to surpass the 55-hour SMA near 1.2690.
If the given moving average holds, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the pair could decline below the 200-hour SMA near 1.2520.
