Both the euro and pound are now down 0.3% against the dollar on the day. While EUR/USD is poised for a downside break, GBP/USD looks to be doing the same as it trades below 1.2600 currently:

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.

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.

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