The GBP/USD Range Continues

In the past few weeks the British Pound has been a currency that is not easy to analyze from a technical analysis point of view, since it depends on the fundamentals, i.e. on politics, so much.

It has been a little over a month since 23^rd June, but GBP is still at the same historically low levels after it fell to 1.3226 in that night and a few days later it reached 1.2788.

Ever since then GBP/USD has been trying to form a correction, but the pair couldn’t reach higher than 1.3480 – and that level was achieved only briefly.

In the past two weeks GBP/USD has been moving in a relatively tight range between 1.3290 and 1.3060. The reason is obvious for everyone – no one dares to risk buying this pair, which depends so much on politics at this stage. The braver traders have only one way out and it’s trading the range. From a purely technical view, the expectation is that the pair will continue moving for about 230 pips in either direction in case the range is broken. And no one can really make an accurate prognosis in what direction that breakout will happen.