After highlighting the GBPUSD earlier this month when it broke out of its three month trading
range between 1.5600 and 1.6000, the GBPUSD continues to gather momentum. As you can see from the chart below, demand levels continue to rise in the GBPUSD. The pairs breakout above its trading range was telegraphed a few days earlier with support building at the 1.5800 level. After surpassing 1.6000, the GBPUSD then went on to find support at this level. The most bullish indicator though was last week, when the GBPUSD quickly reversed a drop below the 1.6100 figure following worse than expected UK GDP figures.
Looking ahead, as long as demand levels continue to move higher in the GBPUSD the pair will be a solid buy on the dip candidate as Forex traders continue to be rotating funds towards the pound. Currently, we would be buyers of the GBPUSD ahead of the 1.6200 figure with bids around 1.6220.