GBP/USD technical outlook is turning bearish following a drop of nearly 90 pips on Wednesday. The pair is currently trading at 1.3762 and is pointing towards the March 26 low of 1.3670. The pair’s immediate support levels are at 1.3755 and 1.3718. The 1.3800 is likely to act as a stiff resistance while other resistances are present at 1.3833 and 1.3874.

On the intraday chart, bears have managed to drag the price below the SMA-14 which is at 1.3785 while the SMA-50 resistance area is at 1.3850. The RSI has also gone below the neutral zone while the MACD is also favoring the bears. On the 4-hourly chart, a bearish moving average crossover is presenting that might help bears drag the price further lower. Following the intraday and 4-hourly price pattern, the pair is good to sell on an intraday basis. A decent selling would be at or near 1.3800 with a target of 50 to 60 pips and a stop-loss at 1.3825.

The 1.3720 area needs to be held for the bulls to get back into the game while a breach below this level would be supportive of the bears and they would be able to drag the price further lower towards the next major support at 1.3670.


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By LCMS Traders FX Analysis Team

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