The pair GBP/USD now seems to have entered a consolidation and was oscillating within a narrow range, trading around the middle area of 1.3500.
The couple returned to the annual maxima early in the european session, but once more came back close to the region of 1.3615-20 and consequently played a minimum of log on to 1.3533 in the last hour hour, though it recovered a few pips thereafter.
Despite the movements, bi-directional, the pair lacked a directional bias firmly in the middle of the moderate action of the prices in us dollars and the operators seemed to be waiting for the planned address by the governor of the BoE, Mark Carney, which will be known later today.
With a possible action of rate hike from BoE in November, almost the price of the market, the traders seemed to be inclined to take some profits of the table, especially after the boe’s aggressive led to a strong increase of more than 450 pips in only two sessions.
On the other hand, investors also appeared reluctant to make aggressive bets in the midst of a tiny record the macro and before the next big event risk — the decision of the FOMC, which will be announced during the trading session in New York on Wednesday.
Valeria Bednarik, Analyst Leader of FXStreet writes that «according to the 4 hours chart, the pair remains well above a SMA bullish of 20, while the technical indicators have corrected partially overbought conditions, but they are losing their slopes downward, the intermediate bearing can be seen at 1.3520, with a break below it that supports a correction movement down, first towards 1.3480/90, and later to the region 1.3440. The resistances can be seen at 1.3565, with gains beyond it that opened the doors to a new test in the daily maximum of 1.3618. «