GBPUSD Getting Back In Downward Trend

GBPUSD seems to be getting back into the downward trend and as predicted two days ago, it has taken a dip from 1.6270 level and has sneaked below 1.6200 level and it looks that it is setting itself up for a move below 1.6100 level now. Once it manages to break below 1.6100 level, then we should expect an extended move by GBPUSD towards 1.5700 level.

Currently the traders will be looking to sell GBPUSD around 1.6300 level if GBPUSD takes some retracement, and will look to sell GBPUSD for targets below 1.6100 level. If the retracement is extended by GBPUSD, then the next level, to sell GBPUSD, will come into consideration around 1.6425 level. The 1.6425 level is also an important and strong level and thus long term traders will be really looking to sell around that level. Use of decent stop is suggested while selling around 1.6425 level as break above that level will trigger the reversal of trend. The aggressive traders might look to reverse their positions in case GBPUSD breaks above the important 1.6425 level.

The moving averages are also suggesting the current selling nature of GBPUSD and also the RSI is also below 43 but seems to have reasonable space to allow GBPUSD to test out 1.6100 level.

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