Yesterday the GBP / USD exchange rate fell to the level of 1.2260. During Wednesday morning, the course attempted to outperform the weekly and monthly S1s of 1.2290.
If the given resistance level holds, it is likely that a reversal may occur southward and there may be some downward potential in the market. Note that the nearest support level – Fibo 38.20%, is at 1.2190.
However, if the given resistance does not hold, it is likely that the British pound could appreciate against the US dollar in the short term. In this case, the currency pair has to surpass the 55- and 100-hour SMAs in the range 1.2320 / 1.2350.