We turn our attention back to the majors today with another look at GBP/USD.

The majors haven’t been doing a whole lot for a while now, highlighted by the Cable charts in this post, clearly stuck in higher time frame ranges.

You can see the daily range on GBP/USD in the chart below:

GBP/USD Daily:
Click on chart to see a larger view.

Zooming into any of the intraday charts, you can see that price is coiling into a wedge pattern:

GBP/USD 4 Hourly:
Click on chart to see a larger view.

Seeing as though price is right smack bang in the middle of the daily range, the direction on which to trade this pattern isn’t clear. Do you view it as a continuation pattern because price has rallied off support and this is merely a pause before a further push higher, or do you take the view that it is simply a turn as we get closer to the top of the range?

Price is very much in an area of indecision at the moment. Keep that in mind if you’re taking a Cable position to end the week.

Take advantage of market opportunity with a Vantage FX live account.

Dane Williams – @VantageFX

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Source: Vantage FX Blog