Death cross continues on the GBP/USD

The Pound versus the Dollar had a good bearish trend that may continue further according to the death cross pattern on the daily chart. The death cross is formed when the 55 day EMA crosses below the 200 day EMA and it has bearish implications in the mid-term. What it means is that in the short term the price may pull back to the upside, but in the longer term the price may continue lower with its bearish trend. When the moving averages cross, this is not taken as an entry signal, due to the fact that the price has been falling from further up and it may be ready for a correction. That is what happened on the GBP/USD daily chart. The price of the pair drops to the 1.3200 level from where it bounces to the upside, when the death cross is formed, the price tries to go back down, but the 1.3300 level is acting as a support at the moment. Below the 1.3300 level, the 1.3200 may also act as support. To the upside, the 1.3500 zone or the 1.3600 could act as resistance.