Market Overview

GBP/USD Taking a Breather

 

GBP/USD is looking to take some breather before it can resume its long term downwards trend. Currently traders will be looking to sell GBP/USD on rise to some reasonable level and once such good level can be seen around 1.5565 level and traders will be looking to sell around that level for initial targets around 1.5450 level and break of that level will set 1.5350 as next target level. On the upper side, break above 1.5565 will set 1.5685 as next target level and that level will be mostly targeted by long term traders.

 

Looking at the moving averages used in the daily charts, it can be seen that GBP/USD is below the long term and medium term moving averages and current retracement has just taken it above the short term moving average. GBP/USD will look to touch medium term moving average around 1.5565 level and in case it breaks above  the medium term moving average, it will next look to touch long term moving average which can be seen around 1.5685 level. The RSI in daily charts is around 44 and seems to have open up enough for GBP/USD to make an extended downward move once it resumes its downward trend.  

 

 

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Posted-In: Forex Markets

 

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