GBP is highly supported by the BoE (Bank of England), due to its continuous buying GBP assets it keeps the GBP moving higher. Intraday trading analysis (tips) for GBP/USD 4 July 2011, we recommend, Enter long in GBPUSD above 1.6055 for target of 1.6125 and 1.6175 also place protective stop loss below 1.6005.
Reason to trade GBPUSD long: GBPUSD has bounced from 1.5905 level and now we see a good buying opportunity in this pair. Strong data from UK is responsible for this rebound. So this up move is likely to continue from the current level towards next resistance level which is at 1.6125. RSI support this up move and it is in favor of the trade on 4 hour chart. So we can see the pair to strengthen further and move towards 1.6175, so trading in the direction of the trend we recommend to trade long on GBPUSD pair.