GBP/USD Forms Bullish Flag at 1.3520 with Higher Targets in Focus

GBP/USD consolidated near 1.3520 Monday, forming a bullish flag pattern that suggests potential for further upside momentum. The pair has gained approximately 0.2% (26 pips) in early trading, supported by technical buying interest and a softer dollar index trading at 100.85. The bullish flag formation, a continuation pattern following the recent rally from 1.3400, points to possible targets at 1.3600 and 1.3650 if the pattern completes successfully. Immediate support lies at 1.3480, coinciding with the flag's lower boundary and the 20-period moving average. The dollar index futures showed weakness, down 0.15%, providing additional tailwind for sterling. Technical momentum indicators including RSI at 58 remain constructive without being overbought. A decisive break above 1.3550 would confirm the bullish continuation, while failure to hold above 1.3480 could negate the positive setup.