GBP/USD getting a little over-bought

Looking at the current upward move by GBP/USD, it seems that GBP/USD is getting a bit over-bought and thus will look to take a little retracement before it can resume its upward trend again. The traders will therefore look to buy GBP/USD on dips to retracement levels and one good retracement level can be seen around 0.6090 level and mostly traders will be looking to buy around that level. In case the retracement is extended by GBP/USD, the traders will look to enter again around 0.6000 level to average out both positions. The level 0.6000 also hold a psychological importance and long term traders will surely look to enter around that level. The initial profit target set by traders will be around 0.6200 level and can be further extended towards 0.6250 level.

Looking at the moving averages used in daily charts, it can be seen that the all the moving averages are below the current GBP/USD and all are indicating an upward trend. The traders will primarily look to enter around the short term moving average which is around 0.6090 level and the long term traders will look to buy around medium term moving average which is around 0.5950 level.

 

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