On Wednesday, the GBP/USD exchange rate tested the support provided by the monthly R1 at the 1.2314 mark. During today's morning, the rate continued to test the given level.
Note that the currency pair is pressured by the 55– and 100-hour SMAs, currently located at 1.2343 and 1.2331 respectively. Thus, if the given support and resistance hold, it is likely that the rate could consolidate.
On the other hand, the given moving averages might not hold, and the British Pound could extend gains against the US Dollar within the following trading session. A possible upside target is the psychological level at 1.2380.