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GBP/USD setting up for a dip

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by
Casey Stubbs
on 10-06-2011 at 09:57 PM (477 Views)
GBP/USD seems to be setting itself up for a nice dip in the long term trend towards 1.5300 level which can be further extended towards 1.5200 level. The traders will mainly be looking to sell GBP/USD on rise to take retracement. Currently the first retracement level for entry can be seen at 1.5460 level and both intra-day and aggressive traders will look to sell GBP/USD around that level. If GBP/USD breaks above the 1.5460 level, then the next level that will come into consideration to sell GBP/USD can be seen around 1.5580 level.

Looking at the moving averages used in weekly charts, it can be seen that the GBP/USD very much below all the moving averages and in case GBP/USD takes long term retracement, it will look to touch 1.5580 level around which the first moving average is currently present. Looking at the moving averages in the daily charts, the GBP/USD is pretty much below all the moving average and in case GBP?USD takes retracement, the short term moving average is around 1.5460 and medium term moving average is around 1.5580 level, so basically this summarize the two entry points both long term and short term traders will be looking for.

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