GBPUSD was locked in a range for the better part of last week. After an impressive rally that commenced on the 24th of August from a low of 1.27732, the FX pair now seems to be taking a breather with an oscillation between 1.35963 and 1.34721.
Price has not been able to close above or below that range at least for a week.
A breakout above or below that can be a potential buy or sell signal. Above 1.35963 price could head to 1.38607, a previous support zone that could now potentially act as a resistance, on the other hand a break below 1.34721 could see price head towards 1.31953, a key price zone so far this month.
Entries can be made on sighting the breakout with stops for short trades placed around the upper range price and stops for long trades placed around the lower range price.