GBPUSD Shaping Up For A Dip

GBPUSD is at the moment setting itself up for a nice dip towards 1.6000 level and traders from all time frames will be interested in selling GBPUSD on rise to some reasonable retracement levels. Currently the aggressive traders as well as intra-day traders will be looking to sell GBPUSD around 1.6200 level and a good reason for that is that it will allow GBPUSD to remain below the high of yesterday. The traders with conservative trading style will be looking to sell around 1.6275 level, which will be a very decent selling level for GBPUSD in long term. If GBPUSD extends its upward retracement above 1.6300 level, then the next level to look out will be 1.6340 level which is a strong weekly resistance as well and in case GBPUSD breaks that level, the reversal of trend will be indicated.

The moving averages are also indicating the same entry levels at the moment. The short term moving average (denoted in red color) is around 1.6200 level and that is the point where short term and intra-day traders will be focusing. Considering the long term moving average (denoted by green), is around 1.6275 level which seems a very reasonable selling level for conservative and long term traders.

RSI has also managed to raise above 42 and seems to have open up more than enough space for itself to allow GBPUSD to make a move towards 1.6000 level.

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