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"is retreating" is a grammatically correct and commonly used phrase in written English.
You can use it to describe an ongoing action or movement of something moving away or withdrawing from a certain place or situation. Example: The army is retreating from the battlefield, in order to regroup and come up with a new strategy.
Dictionary
is retreating
verb
To withdraw military forces.
Exact(59)
Now I feel it is retreating".
The eczema is retreating, fading.
Aetna is retreating and raising prices aggressively".
It recently started spraying again, and the disease is retreating.
But Mr Juppé is retreating in the wider arena too.
BA, by contrast, is retreating to its core activities.
Morgan Stanley is retreating from rail yards development.
And Israel is retreating into a self-destructive siege mentality.
If an attacker is retreating, people are still permitted to use deadly force.
Like the general he was, he is retreating under pressure to higher ground and shorter lines.
"It now appears he is retreating from the proposal he announced less than a month ago".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com