GBP/USD setting up for a break

GBP/USD seems to be setting itself for a break into the downward trend and currently it is being held above 1.5600 level and traders will be hoping to sell it around 1.5665 level for initial targets around 1.5535 level. In case the retracement is extended above 1.5665 level, the next selling level for traders will be something around 1.5750 level. Looking at the downside, break below 1.5535 will set new targets around 1.5460 level.

 

Looking at the moving averages used in the daily charts, it can be seem that GBP/USD has managed to sneak below the short term moving averages as well as the long term moving average is currently looking to be touching the medium term moving average which is currently 1.5600 level and once it manages to break below the medium term moving average, it will be below all the three moving averages and will be all set for an extended downward trend. The two entry points can be seen around the short term moving average and long term moving average which are around 1.5650 and 1.5750 levels respectively. Looking at the RSI in the daily charts, it is 50 level and seems to play no role in determining the direction of the trend.

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