On Tuesday, the GBP/USD exchange rate jumped to the psychological level at 1.2500. During todayâ€™s morning, the rate was testing the support level formed by the 55-hour SMA and the monthly R2 at 1.2459.
If the given support holds, it is likely that a reversal north could occur within the following trading hours. In this case the currency pair could exceed the given psychological level.
If the given support does not hold, the British Pound could continue to decline against the Greenback. Note that the pair could face support of the 100â€“ and 200-hour SMAs, as well the weekly PP in the 1.2380/1.2428 range.