GBP is Looking For Direction

Limited sideways trading for the third consecutive session, confined between 1.3800 support level and 1.3880 resistance level, making the pair unable to determine its next destination.

On the technical side, we find the simple moving averages trying to push the price to the upside, coinciding with the RSI’s attempts to provide additional momentum. On the other hand, we find stochastic that is still providing negative signals.

With technical signals conflicting, we will stand aside for the third session in a row, waiting for one of the following scenarios:

Activating short positions requires breaking the 1.3800 support level and settling below it, targeting 1.3770/1.3765, a first target, and breaking it extends the losses to visit 1.3720.

Activating long positions requires a breach of the 1.3880 resistance level, which may increase the chances of a rise towards 1.3930 and 1.3960 areas, respectively.

S1: 1.3800	R1: 1.3880
S2: 1.3765	R2: 1.3960
S3: 1.3720	R3: 1.4000