GBP/USD back in downward trend

GBP/USD, after completing its retracement towards 1.6150 level, seems to have resumed its downward trend and currently looking to test 1.5940 level initially. Once GBP/USD managed to break below the 1.5940 level, it will be looking to target 1.5835 level. Currently traders will be looking to sell GBP/USD on rise to some reasonable level and once such level can be seen around 1.6050 level. If GBP/USD breaks above the 1.6050 level, then it indicate short term reversal of trend and it will be then be looking to target 1.6160 which is a strong long term resistance.

If we look into the moving averages in the daily charts, we can see that overall all three of them are pointing downwards. The three resistances that we can see at the moment are around 1.6050, 1.6160 and around 1.6260 levels. These are the same levels around which the short term, medium term and long term moving averages are at the moment, so the moving averages are also supporting these levels.

RSI is around 37 in daily charts and is taking further dip with the downward trend but it still seems to have more than enough space to allow GBP/USD to take a dip towards 1.5850 level.

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