Dollar begins to flex its muscles on the session

<p>Both the euro and pound are now down 0.3% against the dollar on the day. While EUR/USD is <a href="https://www.forexlive.com/news/dollar-holds-steady-so-far-in-the-new-week-20240205/" target="_blank" rel="follow">poised for a downside break</a>, GBP/USD looks to be doing the same as it trades below 1.2600 currently:</p><p>The pair had been holding in between a range of 1.2600 to 1.2800 since mid-December. That represented a consolidation phase of sorts but finally, sellers appear to be trying to shake it off.</p><p>A firm daily close below 1.2600 will keep the downside pressure growing. And that will call into question a test of its 200-day moving average (blue line) next, seen at 1.2560 currently.</p>

This article was written by Justin Low at www.forexlive.com.