GBP/USD Getting Over-Sold But Looking To Continue

GBP/USD is moving in a nice downward trend and seems to keep the pace and gradually head towards 1.5800 level. The only thing that will slow GBP/USD down is the over-sold condition but that will open up with GBP/USD taking some retrace or trade sideways for few days.

What traders will be looking for at the moment is some reasonable levels to sell GBP/USD and one such good level can be seen just around 1.6015 level for initial targets around 1.5915 level. In case GBP/USD extends its upward retracement, the next reasonable level can be seen just around 1.6160 level.

If we look at the moving averages, they are playing some important part at the moment. The long term moving average in the weekly chart is below the current market level and is around 1.5900 and around the same place we can see a good support existing at the moment so we might expect GBP/USD to take a bounce from 1.5900 level and provide traders with some good trading levels and opportunity to sell GBP/USD. The moving averages in daily charts are totally pointing downward and no doubt there in the downward trend of GBP/USD.

RSI is just above 33 in daily charts and seem to running out of space to further allow GBPUSD to take dip and is indicating that a retracement is coming sooner or later.

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