GBPUSD Taking Some Breath

GBPUSD, after breaking and settling into a decent upward trend, seems to take a bit of retrace and this retracement seems to head towards 1.6400 level which also is a strong weekly support and we will see that mostly trader looking to buy around this level so that they can cash on the long term move. The current retracement not only will provide good buying opportunities for long term but also for the intra-day traders as well.

Also the short term moving average has just crossed above the medium term and long term moving averages and thus suggesting the start to an upward trend. The initial target, traders will be aiming for is around 1.6580 level and once GBPUSD manages to break above that level, the next targeted level will be at 1.6740 level. RSI is just below 58 in daily charts and seems to be opening more with GBPUSD taking further retracement dip towards 1.6400 level.

In case GBPUSD manages to break below 1.6400 level, we might be looking at GBPUSD extending the sip as low as 1.6150 level but this scenario seems quite difficult at the moment as there are good support levels at 1.6290 and 1.6395 which also is a good weekly support level.

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