GBP/USD looking to resume downward trend

GBP/USD seems to have completed its upwards short term trend towards 1.6200 level and now it is looking to resume its long term downward trend. The traders will look to sell GBP/USD on rise to some decent levels. One such level can be seen around 1.6175 level and it is a strong resistance as well as it will be touching the top of the downward channel. In case the upward move is further extended above 1.6175 level, the next level to be considered for selling can be seen around 1.6250 level.

On the lower side, the first target to be tested will be 1.6050 level and once GBP/USD manages to break below that level, the next level will be around 1.5950 level and break of that will set 1.5830 as next target.

Moving averages are also nicely placed in daily charts at the moment. If GBP/USD rises towards 1.6200 level, it will be touching its long term moving average and will take a dip from it. Similarly on the lower side break of 1.6050 will bring GBP/USD below the medium and short term moving average and will signal an extended downwards move. RSI is around the middle and will support move in both directions.

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