GBP/USD setting up for a nice dip

GBP/USD seems to be setting itself up for a nice downward trend and currently it is looking to take some retrace and traders will be looking to sell it around 1.5650 level and in case GBP/USD decides to extend its retracement, then it will look to touch 1.5750 level. In case GBP/USD manages to extend retracement till 1.5750 level, the long term and advance traders will look to average out the positions. The initial profit target can be seen something around 1.5470 level and in case the GBP/USD seems to carry momentum below that level, the next level can be seen around 1.5340 level.

Looking at the moving averages used in the daily charts, the market can be seen creeping just below the short term moving average and once it manages to do that, then all the three lines will be above the market and downward trend will be fully indicated by all three moving averages. Looking at the entry level, a good level around 1.5625 can be seen because around that level both short term moving average is currently present. The RSI is just above 42 in daily charts and seems to have more than enough space for GBP/USD to make an extended move towards 1.5350 level.

 

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