GBP/USD—Buyers Look to Target the Pivot at 1.50

GBP/USD (1.4919)

• Resistance Levels: 1.4985, 1.5092, 1.52
• Support Levels: 1.4825, 1.4705, 1.4598
• Trade Strategy: Stand Aside

The Sterling continues to trade sideways as price action is stuck in the middle of the consolidation pattern against its US Dollar counterpart. The GBP/USD has been consolidating for three weeks now. Please refer to the below MT 4 daily chart.

At this point, the GBP needs a daily close above the congestion area at 1.4950 to 1.4985. If this happens the market will challenge the technical resistance 1.5092. A close below the key 1.4825 pivot will challenge the technical support at 1.4705.

Price action is too close to a resistance level to warrant a long GBP trade. There are no clear cut bearish reversal signs at this time for a long USD trade (short GBP). Right now my strategy is to sit on the sidelines and wait for an actionable trade to materialize.