GBP/USD still in sideways channel

GBP/USD is caught in a sideways channel between 1.6350 and 1.6200 level and long term traders are not getting much opportunity to trade in these markets while the short term and intra-day traders might be finding it full of opportunities and trading using reasonable stops and profit targets.

Looking in long term trading perspective, it still seems that the market is a little bit on upward side and the long term traders should mainly look to target that range. Once such entry level can be seen around 1.6240 level and the GBP/USD will initially look to target 1.6430 level and break of that will open up 1.6550 level.

Looking at the moving averages, it seems that they are also supporting the same levels as mentioned above and long term and medium term moving averages are looking to cross each other around 1.6240 level and once GBP/USD will touch that level, it is expected to make an extended upward move.

RSI in daily charts is just above 53 level and seems to represent the sideways nature of the GBP/USD and also it is fair to suggest that RSI will support the movement by GBP/USD in both directions so RSI is not indicating much at the moment.

 

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