Breakout and pullback on the GBP/USD to the 1.7000 level.

The Pound versus the Dollar has be gaining a lot of ground lately and has reached a 5 and a half year high at the 1.7062. On the 4 hour chart below we can see that the 1.7000 level was acting as a good resistance for quite some time, but the pair finally broke it and reached the 1.7062 from where it started retracing today.

We can clearly see that a breakout and pullback pattern has formed and the 1.7000 could act as a support now. Therefore, a visit to the 1.7000 could make the price bounce back to the upside and give us a possible long entry. For this reason we must pay attention to that possible visit.