The market is terribly calm today – that usually occurs before important high impact events, such as the speech that the FED Chair Janet Yellen will give tomorrow, which is likely to create some volatility among the USD-related currency pairs.
The only currency pair, which today had if not a clear direction, then the expectation for a clear direction, was GBP/USD.
The pair logically started dropping after the obvious bearish bars formed on the four-hour time frame during the night and at this moment it has reached the diagonal trendline at 1.3170.
This is a very important level because if the pair forms a bullish bar that is a signal for a reversal here, the move to the upside towards 1.3270 could be renewed.
In the alternate scenario GBP/USD will continue dropping towards the support at 1.3050.
Whichever of these scenarios turns out to be more valid, I doubt it will become reality before Janet Yellen’s speech tomorrow.