GBP/USD expected to take a breather

GBP/USD is moving in a nice and extended downward trend and now it seems that it will look to take some retrace and traders will now look to take profits for their traders. The traders will next look to sell GBP/USD again once it rises towards 1.5580 level to take some due retracement. In case the retracement by GBP/USD is extended above 1.5580 level, the next level traders will focus next, to sell GBP/USD, would be around 1.5725 level. On the lower side 1.5400 seems the initial target for the traders once they enter around 1.5580 level and in case the market looks to take an extended dip, then traders will look to target 1.5285 level.

Looking at the moving averages used in the daily charts, it can be seen that the market is well below all three of them and the gap is quite wide now and sooner or later it will pull back the market towards it. Currently the level around the short term moving average is around 1.5580 and around 1.5750 level, we can see the long term moving average thus these two levels can be suggested as good entry points. RSI is on the lower side and will look to push the market upwards.

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