The economic calendar has been almost empty in the past two days, and there were no fundamental events to move the market. So it is hardly surprising that the foreign exchange market is currently slow. In other words, the dynamic of the GBP/USD pair will remain weak unless no breaking news appears throughout the day. This may result in a flat movement extended for the next three days, which is quite long.
The only thing that can drive the market in the near term is the inflation report in the US which is due to be out on Thursday.
Outlook
After a pullback from the resistance level of 1.3600, GBP/USD returned to 1.3500, where it was trading flat for some time. Judging by the current trajectory of the pair, it is still developing an upward cycle from 1.3355. In the course of the movement, there was a change in traders’ sentiment.
The RSI technical indicator holds near the level of 50 on the 4-hour chart, which is a sign of a sideways movement. The overlapping moving averages of the Alligator Indicator on H4 also confirm the formation of a flat channel.
Currently, trading activity is low, which signals an ongoing accumulation process. The preferred strategy is to trade the following momentum near the key levels. This will help you define the further direction of the price.
Trading Signals
A buy position will become relevant if the price holds above the level of 1.3630, with the next target at 1.3740. Going short on the pair will be possible after the quote consolidates below 1.3480, with the target at 1.3400.
Comprehensive indicator analysis generates a mixed signal on the short-term and intraday time frames due to a flat price movement.
