GBP/USD dropped nearly 90 pips yesterday to close lower at 1.3507. Currently, the pair is trading almost unchanged at 1.3505. The 1.3500 area is acting as a strong support area and a breach below this level is likely to extend the downside towards the next support at 1.3462. The intraday resistance levels are at 1.3549 and 1.3574.
On the intraday charts, a bearish moving average crossover is present that is likely to help the bears breach below the 1.3500 level and end the week on a further lower side. The RSI is at 38 and appears flat while the MACD is below the middle line and favors the bears. The intraday and 4-hourly price patterns are now strongly bearish and the 29 September low of 1.3411 can well be challenged. Following the bearish indication, the pair is good for selling entries near 1.3520 with a target of 1.3455 and a stop-loss at 1.3565.
