GBP/USD setting up for another rise

GBP/USD seems to be taking some retrace and it appears that it is setting up for another upward move. Currently traders will be looking to buy GBP/USD on dips to retracement level. Currently a good support level can be seen around 1.5795 level and traders will be buying GBP/USD around that level for initial targets around 1.5885 level. The profit levels can be extended towards 1.6000 if GBP/USD really finds some momentum in upward trend. In case, GBP/USD taken an extended dip below 1.5795 level, then the next level can be seen around 1.5735 level for traders to enter again and may be average out both positions.

Looking at the moving averages used in daily charts, it can be seen that currently GBP/USD is above all the three moving averages and is looking to touch the short term moving average around 1.5790 level where short term moving average is cutting medium term moving average and it seems the ideal entry point for traders and in case GBP/USD manages to break below that level, it will look to touch long term moving average which is around 1.5630 level. RSI is below 55 in daily charts and seems to have more than enough space for an upward move.

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