GBP/USD Stuck in Range as Britain Enters Summer Recess

The British Pound has been stuck in a tight range against the US Dollar for six weeks due to the lack of domestic economic data and events. The currency's value is instead being driven by American payrolls and a Middle East negotiation.

Monday's session saw the GBP/USD pair reclaim its 50-day and 200-day Exponential Moving Averages (EMA), which had been capping every rally since mid-July. However, it stalled just short of 1.3500 and has since traded within a narrow range of 40 pips.

The Federal Reserve's decision to hold interest rates steady at 3.50% to 3.75% on July 29 contributed to the Pound's weakness, as did the collapse in Crude Oil prices due to reports of an interim arrangement reopening the Strait of Hormuz.