Cable Expansion Above $1.3625 Threshold: GBP/USD Coils for Bullish Breakout Toward $1.3695 Extension The
GBP/USD (Cable) 4-hour (H4) chart illustrates a well-structured bullish sequence over the past three weeks, with price action currently consolidating near
1.3637 following a fresh cycle high at
1.3660. This uptrend emerged from a multi-week base between
1.3415 and
1.3520 established in early August, where flat moving averages and tight Bollinger Bands allowed the market to absorb lingering volatility. The initial trend shift materialized on August 6, marked by a strong bullish breakout candle above
1.3485 that reclaimed key moving averages. The momentum accelerated around August 18 as price surged from
1.3555 through the psychological
1.3600 level, taking Cable to its highest levels since early July. This structural move is anchored by macro tailwinds, including broad US Dollar weakness following recent FOMC minutes alongside resilient UK inflation metrics that have pared expectations for near-term Bank of England rate cuts.
Multi-Week Accumulation Base: The early August consolidation phase established structural support between
1.3415 and
1.3520. Fibonacci retracements drawn from the August 3 low (
1.3415) to the August 20 peak (
1.3660) show the 38.2% level at
1.3505 and the 50% level at
1.3537 holding cleanly during pullbacks, validating the underlying demand zone.
Impulsive Trend Sequence & Volatility Expansion: The rally from
1.3555 to
1.3660 expanded the Bollinger Bands to the upside while turning the 20-period and 50-period 4-hour moving averages upward to act as dynamic support. Candlestick behavior reinforces buyer control, featuring full-bodied green expansion candles and small-bodied red pullbacks with pronounced lower wicks.
High-Level Flag Consolidation: Price action between
1.3625 and
1.3660 forms an H4 bull flag pattern. The immediate floor at
1.3625 has successfully flipped from resistance to support, with repeated lower-wick rejections confirming ongoing supply absorption beneath the cycle high. From an execution and structural perspective, key technical levels and target zones are mapped below:
Overhead Resistance Targets: Immediate horizontal resistance sits at
1.3660. A confirmed 4-hour close above
1.3660 opens a direct path toward
1.3695 (aligned with the upper Bollinger Band) and secondary historical targets near
1.3720.
Key Support Boundaries: Immediate structural support rests at
1.3625. A breakdown below this level exposes dynamic support near
1.3590 (coinciding with the 4-hour middle Bollinger Band), while deeper corrective pullbacks target the prior breakout floor at
1.3555. The broader market structure across H4 and daily timeframes remains constructively bullish while price holds above
1.3625. The alignment of rising moving averages, expanding volatility bands, and higher-high price action suggests the path of least resistance points toward an eventual retest and breakout of
1.3660, targeting
1.3695. Conversely, an H4 close below
1.3625 would pause immediate upside momentum and signal a deeper corrective retest toward
1.3555.
