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GBP/USD in a Bullish Breakout

Today, the USD was soft across the board. GBP/USD rallied on the back of this USD-weakness, and is showing a bullish continuation signal.


(gbpusd 4h chart, 6/12)

The 4H chart shows that the pair has been trading in a falling wedge pattern since the high on the year just below 1.70. After finding support at 1.6693, the market has has been consolidating. The 6/12 session pushed it to 1.6860, breaking above the wedge pattern.

This breakout exposes the 1.6920 resistance pivot as well as the 2014-high at 1.6996. Ability to hold above 1.6782 should add confirmation to the bullish outlook. Otherwise, below 1.6780, the focus is back to the 1.6740 pivot, and the 1.6992 low.