With a strong UK Retail sales number announced just minutes ago, GBPUSD 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.
GBPUSD 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 GBPUSD 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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