The GBP/USD reaches the 200 day EMA

The 200 period exponential moving average usually acts as a good support or resistance zone, especially on the higher timeframes. On the daily chart of the GBP/USD we can see one more time how the 200 day EMA has acted as a support where the pair is trying to stall its drop. The weakness on the Pound comes after the disappointing inflation data out of the UK. It is possible for the 200 day EMA to act as a support from where the price may try to go and visit the 55 day EMA, purple line, again. The GBP/USD may stay oscillating between the 200 day EMA and the 55 day EMA, but a breakout above the 1.3000 level may take it to the 1.3100 level or the 1.3200 level. To the downside, a breakdown below the 200 day EMA may cause a breakdown of the 1.2800 level and the pair may go and visit the 1.2700 or the 1.2600 level.