GBP/USD looking to test support levels

GBP/USD is looking to test some important support levels and break below that will start shifting the long term trend into downward direction. Currently the first strong support is around an important and strong 1.5800 level and once the GBP/USD manages to break below that level, the next level it will look to test will be 1.5730 level. Once the GBP/USD take a rebound from one of these levels, it will look to touch 1.5960 level and break of that will take GBP/USD above 1.6000 level and towards 1.6050 level. At the moment, the long term traders will be mostly looking to buy GBP/USD around 1.5800 otherwise the short term traders might look to hold back their traders till GBP/USD opens up some clear trend for itself.

Looking at the moving averages used in daily charts, it can be seen that GBP/USD is currently just below the short term and medium term moving average and is just above the long term moving average. This suggests that once GBP/USD manages to break below this long term moving average, then the long term trend will follow it and in case it bounces from that level, it will look to follow in that case as well. RSI is around 52 and seems to support move in both directions.

 

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