GBP/USD Stuck in Deadlock as Resistance Holds Firm

The GBP/USD currency pair has been stuck in a tight range for fifteen months, and the latest price action is no exception. After trading at $1.3469 on Thursday, the pair remains near the center of its established range. The recent high was just below the resistance level at $1.3500, which has consistently rejected the pair's advances.

The moving average structure is a key indicator of the market's indecision. The 50- and 200-period moving averages are only 8.8 pips apart, with the spot price trading above both lines. This compression suggests that the recent recovery has not yet been strong enough to flip the average cross.

The technical picture is bearish despite the pair's recovery. A bearish double top pattern on the sterling chart contradicts the dollar's medium-term downtrend, which could lead to a breakout if cable breaks above resistance.