GBP/USD on Brink of Breakout as USD Weakness Continues

The GBP/USD currency pair has been trading sideways for about fifteen months, and Adam Lemon from DailyForex believes it may be an advantage for retail traders rather than a barrier to profit.

Lemon notes that the US Dollar is continuing to trade lower after briefly breaking out to a new long-term high price a few weeks ago. Despite this weakness, the price of cable remains near the centre of its range of the past fifteen months, which presents a dull picture for traders.

The resistance level at $1.3500 has been holding strong, but a bullish breakout beyond this level would be supported by the medium-term trend lower in the USD and would be psychologically significant. However, another failure at this potentially pivotal level might be easier to trade.