GBPUSD Technical Analysis Playing the range

On the daily chart, we can see that GBPUSD continues to consolidate around the highs as there’s not much policy divergence between the two central banks now given that the market expects both of them to start cutting rates soon. The sellers are likely to step in around the 1.28 handle to position for a drop into the recent around the 1.26 handle as the rangebound price action is likely to continue.

On the 4 hour chart, we can see more closely the range between the 1.26 support and 1.28 resistance. The best strategy is generally to sit out and wait for a breakout supported by a fundamental catalyst, but one can also “play the range” by selling at resistance and buying at support. On the 1 hour chart, we can see that the price action has been choppy and quite erratic.

There are no clear levels where to lean on except the resistance zone around the 1.28 handle and the support zone around the 1.26 level. We have the UK GDP data in a few minutes but whatever the data will show, the pair is likely to reject the resistance given that it won’t be enough to change the big picture.

the only notable events on the agenda are the UK GDP and the US PPI data..