GBP/USD broken in downward trend

GBP/USD seems to have managed to break into a downwards trend and the traders will not mainly focus on selling GBP/USD on rise to reasonable levels. One such selling opportunity can be seen around 1.6200 level and traders will look to enter around that level for initial targets around 1.6100 level break of which will set 1.6010 as next target which is also a very good long term level as well. On the upper side, only the break above 1.6260 will indicate reversal of trend so it will be mostly selling traders will look for.

Looking at the moving averages used in daily charts, GBP/USD has managed to sneak below all of them and are clearly pointing downward trend. The long term moving average in weekly charts can be seen around 1.6010 level and that seems to be the target GBP/USD is looking for. It seems that GBP/USD will now move towards that level and after touching it will take some bounce back.

The RSI is just above 45 level and seems to have more than enough space to take an extended dip towards 1.6000 level and even below that in a single move and that is what traders will be aiming at.

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