The retracement continues on the GBP/USD

The GBP/USD continues retracing to the downside since it made a high at the 1.3600 level. On the daily chart we can see that when the pair broke below the 1.3500 level, the bearish momentum accelerates to break today below the 1.3300 level. At the moment, the pair is getting close to the 1.3200 zone, which could act as support due to different factors around that zone. The 50% Fibonacci retracement from the latest rally that the GBP/USD made from the 1.2800 zone to the 1.3600 zone could contribute to help stall the retracement at the 1.3200 level. The 55 day EMA (purple line) around the 1.3200 level may also act as a support for the GBP/USD. But besides all the factors around the 1.3200 level, the area with a higher probability to act as a support is the 1.3000 level. At the 1.3000 level we have the 200 day EMA (blue line), which traditionally acts as a better support or resistance zone. At the 1.3000 level we can also see the 76.4% Fibo, which also acts as a better support or resistance zone than the 50% Fibo. And finally the 1.3000 level itself is a round number level with a higher probability of acting as a support or resistance.