Two days ago I posted an analysis on USD Index, and concluded that it broke out the horizontal resistance line and was facing another strong resistance. After that, DXY consolidates at current level and wasn't able to break further upwards.
Interestingly, I found a breakout pattern on the British Pound. This might somehow indicates that US Dollar Index could not make its way above the resistance.
Above is the 4-hour chart of GBP/USD. Surprisingly extremely obviously, the Pound just broke out the red down-trend channels.
The most upper line is supposed to be quite a strong one, as the price of sterling has been below this line since the start of May.
Breakout of this line signals a strong reversal of trend. It seems like GBP has bottomed at 1.60 and started to move upwards.
Next resistance would be at around 1.63. This is the previous high and the 161.8% fibonacci level using the previous short-term up-trend wave as reference.
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