GBP/USD Deadlock Continues as Pair Stuck in Tight Range
The GBP/USD currency pair has been stuck in a tight range for over 15 months, oscillating between $1.3280 and $1.3520 without making significant progress.
After printing a high of $1.3520 on July 31 and August 1, the pair retreated to the 1.3420-to-1.3430 area before climbing back up to $1.34607. However, it failed to extend beyond this level and has been trading within a narrow range ever since.
The trend structure of the pair remains bearish, despite the recent recovery. The latest downward wave broke below the previous low, while the latest upward wave failed to break above the previous peak.
Analysts point out that the momentum is constructive without being stretched, with the 14-period relative strength index hovering near 59. However, the technical apparatus is stacked inside a 30-pip window, and a break in either direction could resolve the deadlock.