GBP/USD closed lower due to short covering on Thursday as it consolidated some of Wednesday's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If its extends last week's decline, the October 15th gap crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.