FX.co ★ hamforexh | GBP/USD

Looking at the GBPUSD on the four-hour chart, the pair is currently trading at 1.3575 after staging an impressive and decisive breakout from a multi-day consolidation range that had trapped price between roughly 1.3500 and 1.3540 for the better part of a week. What stands out immediately is the sheer conviction behind the most recent bullish candle, which sliced cleanly through the upper bound of that range and pushed price aggressively toward the 1.3620 resistance zone, leaving very little upper wick behind. This is not just market noise or a random spike; it is a genuine structural shift that suggests the prior period of indecision — characterized by choppy, back-and-forth price action, overlapping candles, and tangled moving averages during the April 20–27 period — has finally resolved in favor of the bulls. The moving average structure has now realigned in a textbook bullish formation, with price trading comfortably above the entire cluster of red, blue, orange, and purple averages, and the faster averages beginning to slope upward with clear separation. That alignment tells me the path of least resistance has definitively shifted higher, and the previous resistance around 1.3540 is now acting as a first line of defense for buyers. The broader rally from the 1.3380 lows has been remarkably methodical, with higher lows consistently forming along the way, and the latest leg higher appears to be accelerating rather than showing signs of exhaustion. The 1.3620 level is the obvious near-term target and a critical psychological barrier; a decisive four-hour close above it would open the door for a continuation toward 1.3650 and potentially higher, while any pullback that holds above 1.3540 should be viewed as a healthy retest of the breakout zone rather than a premature reversal.

From a momentum perspective, the indicators are backing up this bullish narrative without flashing any immediate warning signs that would suggest chasing here is reckless. The RSI(14) reading of 64.65 is comfortably in bullish territory without being stretched into overbought conditions above the 70 threshold, which means there is still meaningful room for price to run higher before momentum becomes a genuine concern. During the consolidation phase, the RSI held stubbornly above the 50 midpoint, never dipping into bearish territory even on the deepest pullbacks, and that resilience is exactly what you want to see when a healthy trend is simply digesting gains before its next impulsive move. The Accelerator Oscillator reading of 0.000973 is firmly positive and visibly expanding, confirming that bullish momentum is not just present but actively accelerating as price breaks out of the compressed range. The green volatility indicator also spiked sharply on the breakout candle, confirming that this move is backed by genuine market participation and volume conviction rather than low-volume drift in a thin market. The combination of a clean range breakout, a supportive and realigned moving average structure, an RSI with plenty of room to breathe, and an expanding AC creates a technical confluence that is difficult to argue against from the short side. My bias here is clearly bullish, but I am watching the 1.3540 former resistance-turned-support level with precision; if price sustains above it on any intraday dip, I will look for long entries on shallow pullbacks targeting 1.3620 and 1.3650 in sequence. Only a drop back below 1.3500 would force me to reconsider this outlook and acknowledge that the breakout was a fakeout. Until that happens, the weight of the evidence points to further upside, and I am positioned to ride this momentum while it lasts, keeping risk managed tightly beneath the breakout zone.