⬤ GBP/USD is taking a breather after its recent strong climb, and the intraday chart shows a classic bull flag pattern developing. Cable is pausing just below recent highs after a sharp move up, trading in a tightening range. Right now, support is sitting at 1.3705, while resistance and the upper edge of the flag are around 1.3805.
⬤ The pair previously broke out of a broader correction, sparking a quick rally toward 1.38. Once it hit that zone, momentum cooled off and price started consolidating in a downward sloping channel—textbook bull flag behavior. Even with some short-term pullbacks, price has stayed above 1.3705, showing that sellers haven't gained much traction yet.
⬤ Technically, GBP/USD is holding above key retracement levels from the recent impulse move. The consolidation looks orderly with no decisive break below support, suggesting this is more about digesting gains than any kind of trend reversal. Cable is still locked in the flag structure, and what happens next likely depends on whether it can push past 1.3805 or loses grip on 1.3705.
⬤ This matters because GBP/USD tends to react sharply to short-term technical setups and momentum shifts. Bull flags typically compress volatility before a breakout occurs. How Cable handles the 1.3705 support and 1.3805 resistance could shape near-term sentiment not just for the pound, but across major currency pairs as traders watch whether this rally has staying power.
