GBPUSD breaks lower but stalls at a key support floor Will the downtrend continue?

<p>For those who have seen my daily posts/videos on the GBPUSD (any of them), the pair has been trading in an up-and-down trading range going back to December 14. That range is between 1.2600 and 1.2800. </p><p>Today, the price moved sharply lower after the stronger US jobs report, and the price move to a lower swing area between 1.2602 to 1.26137. The low price today reached 1.26147 – just above the high of that swing area – and has bounced. The bounce has taken the price up to around 1.2640. </p><p>What next?</p><p>There is some resistance at 1.2647 area. If that level holds, then we should see a move back down to retest the low extreme target. </p><p>If it moves below 1.2602, the next key target comes in at the 200-day MA at 1.25607. The price of the GBPUSD has not traded below the 200 day MA since November. On a test, I would expect buyers to lean on the first look (with stops on a break below). </p><p>If the price does move above 1.2647, there could be some disappointment on the failure to get outside of the range. Be aware. </p>

This article was written by Greg Michalowski at www.forexlive.com.