The Sterling Pound seems to take retrace of its long term upward trend and looking to set itself up for an extended upward move and resume its upward trend. Traders will currently look to buy GBP/USD around retracement levels and one such retracement level can be seen around 1.6135 level. Once the traders managed to buy GBP/USD around that level, they will look to target 1.6245 level initially which can be further extended to 1.6340 level. On the lower side, dip below 1.6135 will set entry levels below 1.6000 level.
Looking at the moving averages used in daily charts, it can be seen that GBP/USD has gradually move above all three moving averages and is just above the short term moving average at the moment. The traders will look to enter around the level where medium term moving average is currently at the moment and it is round about 1.6080 level. In case the dip continues, we will see traders targeting long term moving average for entry around 1.5900 level. Break below that will indicate reversal of trend in long term as well. RSI is just below 62 and has more than enough space for an extended upward move.
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