GBP/USD is trading 0.22% higher to 1.3838 after closing nearly 80 pips lower on Tuesday. The intraday resistance levels are at 1.3840 and 1.3876. The near-term support areas are at 138.00 and 137.72.

On the intraday charts, the pair’s price pattern is bearish despite today’s gains. The current price is near the SMA-14 (13830) resistance area while the SMA-50 resistance line is at 140.12. The RSI is below the neutral zone and the MACD is having a bearish crossover that is likely to help bears drag the price lower. The pair is also keeping below the mid-Bollinger band (1.3855). Following the nearby resistance areas and analyzing the USD strength the pair is likely to drop which makes it ideal for short entries at the following levels.

Direction: Sell
Entry: 1.3860
Take Profit: 1.3800 – 1.3780
Stop-Loss: 1.3890

A sustained price action near 1.38000 would be an indication of further weakness and the possibility of testing the 1.3730 support area would be higher. On the upside, bulls need to breach above the SMA-14 in order to make some intraday gains.

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By LCMS Traders FX Analysis Team

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