The Pound sinks

The Pound versus the Dollar accelerates its bearish momentum below the 1.3900 level and it is trying to reach the 1.3700 level. The pair may find some support around the 1.3700 level due to the fact that the zone has already acted as a support in the past. Besides being a round number level, just below the 1.3700 level we can see the 200 day EMA (blue line), which in turn may also contribute for all that area to become a good support. On the other hand, if the pair breaks below the 200 day EMA, the price may drop to the 1.3500 level. To the upside, in case of a pullback, the GBP/USD may find a resistance at the 1.3900 level. Usually after a big drop or rally, the price tries to pull back, because some profit taking takes place. Therefore, the pair may pull back to the 1.3900 level or the 1.4041 zone where we can find the 55 day EMA (purple line) and the 200 week EMA.