The GBP/USD retraces to the 55 day EMA

The GBP/USD plummets during today’s session, pressured to the downside by strength in the US Dollar and the possibility that the upcoming UK general elections could turn very tight for the Conservative Party of the Prime Minister, Theresa May. The GP/USD drops to the 1.2800 zone where we can find the 55 day exponential moving average (purple line) or the 55 day EMA. The confluence of the 1.2800 round number level and the moving average could make this zone a very good support for the GBP/USD. Therefore, it is possible to see a bullish bounce from this area. If the pair bounces to the upside, then it may try to go and visit the 1.2900 level, which could become a resistance. To the downside we can find some levels that could also act as supports in case the pair continues dropping. For instance, the 200 day EMA (blue line), around the 1.2738 level could be its closest support, followed by the 1.2700 level. But a level that could act as a better support is the 1.2600 level, due to the fact that the zone acted as a resistance in the past and now could change its function to a support.