The GBP/USD currency pair has been in a state of flux, with traders eagerly awaiting a breakthrough. The pair has been consolidating within a range, with repeated failures to break above the $1.3637 area, which has left many traders discouraged. However, the recent price action has shown higher lows, indicating a potential shift in the market dynamics. The uncertainty surrounding the US Dollar adds to the intrigue, with the possibility of a significant breakout beyond the $1.3637 area. This could lead to powerful profits on the long side, but bulls must overcome two key resistance levels to make strong progress. The 'coiling' below $1.3637 is attracting the interest of more traders, and the potential for a short trade set up is also being considered. The USA/Iran war and related tensions could send the USD higher as a safe haven, and a sudden news of action or escalation could trigger a bullish breakout. However, the EUR/USD currency pair may be a better option for long trades against the USD. The GBP/USD pair has been showing higher lows since May 4th, with a clear line of resistance at $1.3637 and another above that at $1.3666. Trading this pair tends to work better on breakouts than pullbacks, and the month of May has produced a consolidation with a flat top and a series of higher lows. The pressure on the sell orders at about $1.3637 looks like it must be increasing, and even if a bullish breakout occurs, the price may not have much room to rise due to the key resistance levels overhead. The key to trading this pair is to watch how the price reacts when it reaches $1.3637, with long trades likely to be good opportunities if the price gets established above $1.3666, and short trades an option if the price rejects $1.3637 with a firmly bearish move. With no high-impact economic data releases scheduled today, it may be a relatively slow day without a great deal of directional price movement.
