GBP/USD Analysis - A Breakout Is Highly Likely

I'm back to work now after a fantastic holiday and have been looking at the GBP/USD pair today. In the last few weeks this pair has been trading in a very narrow range and it is becoming obvious to me that we are very likely to see a significant breakout in the near future.

With the price at around 1.54 at the time of writing, I think we will shortly be seeing an upwards breakout towards the 1.60 level or a downwards breakout towards the psychologically important 1.50 level.

The reason I say that is because on both the 4 hour and daily charts the 5, 20, 50 and 200 period EMAs are all tightly grouped together. This doesn't happen very often but when it does, it usually means we are about to see a big move, particularly when you get tightly grouped EMAs on two very significant time frames, ie the 4 hour and daily chart.

My bias is currently towards the downside because the Supertrend indicator is currently red on the daily chart but the MACD and Smoothed Repulse indicators look like they may be about to turn upwards on the daily chart, so it's hard to be confident.
Anyway you don't need to guess which way the markets are going to move. You simply need to wait for the price to make it's move and break the current sideways trend, because once it does I think there will be a lot of pips to be had.