The Pound stays weak

The GBP/USD could not confirm the break out above the 1.3500 level and falls back down slowly towards the 1.3300 zone where we can find the 55 day EMA (purple line). On the daily chart of the GBP/USD we can see that the price has formed what it appears to be a bullish flag. If the price breaks above the 1.3500 level, then the bullish flag pattern may be confirmed, but a break out of the 1.3600 level would be a better confirmation. On the other hand, the stochastics indicator has room to keep falling before entering the oversold area, therefore the price of the GBP/USD may try to drop below the 1.3300 level and visit the 1.3200 level. A better support could be the 1.3100 zone where we can find the 200 day EMA (blue line).