GBP/USD Breaks Out to Multi-Year Highs on Strong UK Retail Sales and Dollar Weakness

Chart Analysis:

• The 1-hour chart shows a clear bullish structure, with successive higher highs and higher lows.

• Price action has decisively broken above a descending trendline and key horizontal resistance near the 1.3460–1.3475 zone, now turning it into support.

• A sharp bullish candle confirms the breakout, backed by strong volume and momentum.

• The projected path in blue suggests a potential bullish flag or consolidation near the breakout level before another leg higher toward 1.3550, in line with continuation patterns.

 Fundamental Tailwinds:

• UK Retail Sales rose by 1.2% in April, vastly outperforming the expected 0.2%, signaling resilient consumer demand and adding fuel to the Pound's rally.

• Meanwhile, the US Dollar is under pressure amid soft macroeconomic sentiment and growing expectations of a potential Fed rate cut, further strengthening GBP/USD.