With a strong UK retail sales number announced, GBP/USD has spiked higher from 1.5425 to 1.5510. The British pound is forming a bullish flag relative to the US dollar and is also above a long-term downward sloping trend line resistance. This indicates that there are more chances of an upward breakout and a push towards 1,56 and why not higher.
First we have the daily chart shown below.
GBP/USD is breaking above the green trend line resistance that connects the two previous highs. The price action of the last few days is more like a consolidation before the continuation of the previous trend, which was bullish.
In the 4 hour chart above, you can see how price has formed a bullish flag and how the Ichimoku cloud is providing support for the GBP/USD at the 1.54 area. A 2 hour close above 1.5510 will confirm the breakout, with 1.56 as minimum target.
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