GBP/USD Still Trading Sideways
The market has been indifferent to policy decisions of the Bank of England. So, GBP/USD has not been able to escape the trading range between 1.3900 and 1.4000. The lack of response to such fundamental news brings signals of technical analysis to the forefront.
The consolidation within the clearly defined borders has been going on for over 120 hours. It indicates that supply and demand are still in equilibrium. The price dynamic could accelerate anytime that could smash any of the borders.
The Fibonacci levels confirm the lower border of the sideways corridor at near 1.3900, pointing at the 23.6% Fibonacci level that is 1.3885.
Technical analysis still suggests the same trading idea based on a breakout of a particular border. A range-bound strategy is considered risky and less profitable.
The upward move will be in the cards in case the price holds firmly above 1.4000 that will open the door towards 1.4100-1.4150.
The bearish scenario will be in the works in case the price holds firmly below 1.3885 that will open the way towards 1.3825, the 61.8% Fibonacci level.
Complex indicator analysis is now generating a feeble signal because the price is trapped inside the trading range. Once the market determines the trajectory, a daily chart will produce a clear signal.