GBP/USD Setting Up For A Nice Dip

GBP/USD is looking to set itself up for a nice dip towards 1.5800 level and before doing that it will be tested by 1.5935 level. The break below 1.5935 seems to initiate momentum which will carry GBP/USD to 1.5800 level. Both long term and short term traders will be looking to capitalize on this move and to do that, they will look to sell on retracements and one such level can be seen around 1.6050 level and both intra-day and long term traders will be looking to sell GBP/USD around that level.

If GBP/USD extends its upward move and manages to break above 1.6050 level then the next level, it will be looking to test will be 1.6160 and long term traders will be interested in selling around that level. The moving averages are also pointing downwards and market is well below all of them. Although the long term and medium term moving averages are gradually pointing downwards but still they are pointing downward trend.

The RSI is around 34 in daily charts which is on the lower side but might still have one dip left in it. Most probably GBP/USD will take some retrace after testing 1.5935 level once and then after taking some breather will look break 1.5935 level.

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