GBP/USD Broke Above the Flag Trendline and Began Rising as Expected

The pair broke above the trendline at the 1.33286 level, but before that unsurprisingly it dropped only to form a double bottom at the support at 1.32400. Considering that double bottom it was also unsurprising that it continued moving to the upside.

The limit of the flag is at the 1.34080 level, which is a strong resistance, but if GBP/USD succeeds in reaching that limit and breaks above the resistance then I think that the move to the upside will continue all the way to the resistance trendline of the bullish channel that has been forming since 15th August this year. Of course, such a development will last for quite a while and it is possible for our expectations to change according to the new patterns we see the pair form.