GBPUSD is approaching an important level at 1.6175 as this level holds the key at the moment to determine which direction GBPUSD will settle in the long term. If we consider the current long term upward channel of GBPUSD, the 1.6175 level seems to be the target for the completion of current replacement and GBPUSD will resume long term upward trend from that level. The long term traders will agree with this thought and they will be looking to buy GBPUSD for levels below 1.6200 and their initial profit targets will be somewhere around 1.6450 level.
If case GBPUSD manages to break below 1.6175 level, indications of reversal of trend will be there, in that scenario, GBPUSD will be breaking below the long term upward channel and also will be breaking below both long term and medium term moving averages. Traders focusing on selling GBPUSD will be looking to sell GBPUSD around 1.6275 level for initial targets around 1.6220
The RSI has also taken a good dip with current downward move and is currently around 51 in daily charts. Currently RSI don’t seem to indicate any direction and have equal space to support the move in both directions.
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