Over-bought GBP/USD taking breather

GBP/USD has moved in a nice upward trend and now seems to be taking retracement in long term trend also due to the reason it had gone quite over-bought. Basically traders will be looking to buy it for reasonable dips towards its retracement level and one such level can be seen around 1.5730 level. Both Intra-day and long term traders will be looking to buy GBP/USD around that level for initial targets around 1.5885 level. In case GBP/USD gathers enough moment to break above 1.5885 level, then it will look to touch 1.6000 level but that seems a little less likely without GBP/USD taking an extended retracement towards 1.5630 level.

Looking at the moving averages used in daily charts, it can be seen that the market is above all the three moving averages and for entry, traders will look for entry points for dip towards short term moving average, around 1.5800 level and in case the move the extended (which is more expected), the nest entry level will be long term and medium term moving averages crossing each other around 1.5600 level. RSI is 66 in daily charts and will be pushing the GBP/USD down to open up some space before resuming its upwards trend.

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