GBP/USD looking to break into a downward trend

GBP/USD seems to be gradually settling back into a downward trend and currently is looking to test an important level around 1.5750 level, break of which will really open up a  downward trend for GBP/USD and it will look to test 1.5650 level next. Long term and Intra-day traders might hold back a little and wait for GBP/USD to take some retrace and ideally will look to sell GBP/USD around 1.5900 level and in case the upward move is extended, then the next strong weekly resistance can be seen at 1.6000 level and that might really interest long term traders to enter for an extended downward trend. The break above 1.6000 level trigger reversal of trend and traders will look to then reverse their traders and look to buy GBP/USD.

Looking at the moving averages used in the daily charts, it can be seen that the market is above the long term moving average but below the short term and medium term moving average. In case of entry, medium term moving average can be targeted which is around 1.6000 level and the profit target can be focused on the long term moving average around 1.5775 level. The RSI is just above 44 in daily charts and have more than enough space for GBP/USD to take an extended dip.

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