GBPUSD S

GBP/USD remains range-bound, with a modest dollar recovery and uncertain geopolitics limiting upside and keeping price action moderate. The overall picture remains in a constructive consolidation phase, but yesterday's downward action signals a greater likelihood of further drops.

Key Indicators

• The GBPUSD currency pair displays a hanging man pattern on the daily chart, indicating a rejection from a three-month high. Additionally, it is trading below the 20 SMA, which suggests short-term weakness

Fundamental Context

The British pound is struggling to regain momentum against the dollar as fading hopes for Middle East peace boost the dollar. The strong US inflation numbers also helped the dollar rebound.