GBP/USD ready for upward break

GBP/USD is looking to break into an extended upward trend and currently testing an important resistance around 1.6000 level and once GBP/USD manages to break above that level, it will look to test 1.6100 level. Mostly traders will be looking to buy GBP/USD on retracement dips towards 1.5910 level and in case the retracement dip is extended then it will look to test support around 1.5820 level.  The traders will look to buy on dips to these levels and will look to target 1.6075 level.

Looking at the moving averages used in the daily charts, it can be seen that all three moving averages are below the current market level which indicates the upward trend of GBP/USD in all time frames. The first entry level can be seen around the short term moving average which is around 1.5905 level and the second entry level, suited for intra-day and long term traders can be seen around the medium term moving average which is around 1.5820 level. RSI is just above 60 and seems to have more than enough space for GBP/USD to make an extended move above 1.6000 level towards 1.6100 level in a single go. So it is fair to suggest that overall trend is in buying.

 

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