GBP/USD caught in sideways channel

GBP/USD seems to be caught in sideways channel and for the long term traders, it is very difficult to predict which direction it is going to break in the long term trend. The current sideways range seems to be enclosed by 1.6200 and 1.5850 levels and GBPUSD seems to form short trends between these two levels.

Looking at the current situation 1.6180 level seems an important long term selling level and long term traders will be looking to sell around that level. In case GBP/USD manages to break above that level, then another important weekly resistance level can be seen around 1.6290 level. Again is will also be a point of focus for long term traders as well as medium term traders.

On the lower side, 1.6050 support level is holding the GBP/USD up and once the market breaks below that level, a long term move can be expected which will initially targeted towards 1.5935 level and can extend as low as 1.5750 level.

The moving averages are also holding the market between 1.6200 and 1.6050 levels and looking at them suggests that GBP/USD will take a dip from 1.6200 level and will try to break below 1.6050 level. RSI is at 51 and seems to play no part in current movement of GBP/USD.

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