GBP/USD taking retrace

GBP/USD, after taking good dip, is looking to take some due retracement. Still GBP/USD has not taken any real retracement as an upward move rather it is being traded in sideways trend and it feels that it is taking some breather to take a dip again towards 1.5900 level and then continue in its downward trend. On the upper side 1.6075 seems to be the first retracement level and if GBP/USD manages to break above that level and extends its retracement then the next level of consideration will be at 1.6160 level. The long term traders will be looking to sell GBP/USD firstly around 1.6075 level and in case the retracement is extended, then will look to average out around 1.6160 level.

Considering the moving averages in daily charts, it seems to indicate that GBP/USD will extend retracement towards 1.6160 level and then resume downward trend and moving averages in weekly charts are also suggesting that GBP/USD will stay between 1.6160 and 1.5915 level.

RSI is currently at 39 in daily charts and seems to open up after the current retracement and have open up enough space for GBP/USD to resume downward trend and challenge 1.5900 level once again. Low RSI value was another reason for the current retracement by GBP/USD.


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