The breakout from the flag pattern failed to follow through in the end and instead the exchange rate fell back down. It has been trading in a range-bound sideways move but is now breaking down out of that as well, and threatens to accelerate lower.
A breakout from the consolidation at the highs could fall to support at 1.6115, although support from the monthly pivot at 1.6200 is another possible target. A bullish outlook is supported by long-term trends and a break above 1.6485 might provide confirmation of more upside, targeting 1.6550, although the current breakdown this morning makes that seem unlikely now.
Analysis by: Joaquin Montfort - Liga Forex Analyst on GBPUSD