GBP/USD oversold

GBP/USD has moved nicely in a steep downward trend and it seems that now is time for GBPUSD to take some extended retracement and then make a dip towards 1.5500 level. Currently the traders especially the long term traders will be holding back their entries and wait for GBP/USD to take retrace and then enter the market. The first good selling level can be seen around 1.5890 level but that will be mostly targeted by the aggressive traders. The more conservative and medium risk traders will look to sell around 1.6000 level for a nice dip towards 1.5500 level.

Looking at the moving averages used in weekly charts, GBP/USD is currently below all three moving averages and it will look to take retrace and touch 1.6000 level around which all three seems to meet. Looking at the moving averages in daily charts, again GBP/USD is well below all three moving averages short term moving average is indicating 1.5890 as entry level and long term moving averages are suggesting entry level around 1.6150 level which might come down in coming few days. The RSI is on the lower side in daily charts at 30 and it will also be pushing the GBP/USD upwards.

 

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