GBP/USD bulls target breakout after extended summer consolidation phase

GBP/USD is showing signs of bullish momentum as traders eye a potential range breakout following weeks of summer consolidation. The pair has been trapped in a tight trading range, building energy for a directional move as market participants await fresh catalysts. Technical analysis reveals compression patterns typically associated with impending volatility expansion, with bulls positioning for an upside breakout. The extended consolidation period has allowed moving averages to converge, setting up potential dynamic support levels. Key resistance lies at the upper boundary of the recent range, while support has been established through multiple tests of the lower boundary. A successful breakout could trigger momentum-based buying, targeting psychological levels above. However, traders should remain cautious of false breakouts common after prolonged consolidation phases. Volume and momentum indicators will be crucial in confirming any directional move.