The Pound is stuck at the 55 EMA

The GBP/USD has come back to the 55 day EMA and stays stuck at that level, around the 1.2437 zone. The 55 day EMA is acting once again as a support for the pair, but a breakdown of that zone could accelerate the drop towards the 1.2300 level. The more the price tests a support or resistance, the faster it accelerates in direction of the breakout. In the case of the GBP/USD daily chart we can see that the price has already tested the 55 day EMA three times; therefore, the drop could be significant in case it breaks below it. To the downside, below the 1.2300 level, the next support levels could be any of the round number zones like the 1.2200, the 1.2100, or the 1.2000. In case the pair bounces to the upside from the 55 day EMA, it may try to go and visit the 1.2600 level, but it has to confirm breakout of that zona in order for the GBP/USD to go back to its bullish trend. Above the 1.2600 level, its next resistance could be the 1.2800 level.