GBPUSD has settled nicely in a downward trend and is currently setting itself up for a very nice dip below 1.6000 level. Traders will be currently focusing on selling GBPUSD on rise to some reasonable retracement level and one such level can be seen around 1.6170 level. In case the retracement is extended, then the advance traders will focus on selling around 1.6275 to average out both positions. The overall scenario is very good for selling GBPUSD and therefore we will be seeing both long term and short terms traders selling for targets below 1.6000 level.
All the 3 moving averages used in this analysis charts are pointing downwards and so is GBPUSD below them at the moment. This clearly indicated that GBPUSD is setting itself up for a nice dip. In case GBPUSD manages to break below 1.6000 level, next target will be around 1.5800 level. The main thing to be considered at the moment is the value of RSI which is around 35 in daily charts and thus only seems to have space to take a dip towards 1.6000 and dip not too much below that level is expected. So we might be looking at GBPUSD taking a dip just below 1.6000 level and then bouncing back to take some retrace and then might again gather some momentum to test out 1.6000 level.
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