GBP/USD almost finished with retracement

GBP/USD is trying to get back into long term upward trend but before doing so, it is taking some retrace and that retracement move seems to be completed. The first retracement level can be seen around 1.5750 level and break of that will set an important level around 1.5612 which is also an important level in weekly charts. The traders will look to target 1.5885 level initially and once GBP/USD manages to break above that level, it will next look to target an important resistance level at 1.6000 which is also a key psychological level.

Looking at the moving averages used in daily charts, it can be seen that GBP/USD is currently above the medium term and long term moving average and is looking to break above the short term moving average. The traders will look to target 1.5760 level for entry where medium term moving averages is at the moment. The long term traders will be looking to target 1.5615 level where the long term moving average is at the moment. The RSI has eased to 55 in daily charts in result of the current retracement and has opened up considerable space for GBP/USD to make an extended upward move.

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