The GBP/USD pair traded from its March 20 lows at 1.1410 to the 200-day moving average on April 14 and failed to breakout. On April 30th, the pair tried again to break the same moving average and failed again.
Finally, on June 5, the pair broke through for a full 5 days and fell below it near 1.2700. Staying above the 200 day moving average at the point where it broke through was a difficult task. Not only was there horizontal resistance above the 1.2720 level, but there was also a downward sloping trendline away from the December election highs near 1.2850.
On June 10, the GBP/USD pair formed a Shooting Star and fell 6 out of the next 7 days, including on Friday. It also broke the ascending trend line to close near 1.2750, the horizontal support.
If the pair continues lower, the next horizontal support is at 1.2296 and then the 38.2% Fibonacci retracement level near 1.2271. Then below the 50% retracement level near 1.2100. If the pair trades higher next week, there is horizontal resistance near Friday's high and a sloping uptrend near 1.2456. The next resistance is the elusive 200 day moving average near 1.2692!