GBP/USD tests the downside
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GBP/USD had been rejected down from the 200-week MA in the 1.3033 area. Then it fell below the 100-week line at 1.2950. On Wednesday, the pair closed below the 200-day MA (currently at 1.2936). As long as it is trading below this level, the technical picture will remain bearish. There may be some support at 1.2870 (February low), but the odds of an upcoming breakout to the lower levels are big enough. The targets in this case will be at 1.2825 and 1.2770 (previous lows). The return above the 200-day MA will allow a retracement to 1.30. However, this psychological level and the downtrend resistance will likely stop the advance.
Trade idea for GBP/USD
SELL 1.2860; TP1 1.2825; TP2 1.2770; SL 1.2880
