The British pound sterling managed to post modest gains into Friday’s close.
Price action rallied towards the 1.3122 resistance level. Failing to clear this level, the cable ended the session on a somewhat weaker note.
It is clear that GBPUSD has established a sideways range between the 1.3122 and 1.3000 levels. We expect this range to hold in the near term.
Given the weakness in the US dollar, the cable might just be able to breakout higher from this sideways range.
Within the overall uptrend in GBPUSD, this sideways pattern is showing signs of a pause to the uptrend.
Therefore, the direction of the breakout from this range will prove to be critical for the uptrend in the near term.