I have a proposal for a range trading strategy. Please let me know what you think. It essentially involves trying to take advantage of a range continuing or if a breakout occurs by placing OCO orders. Stop losses can be trailing stops (dynamic or fixed depending on the volatility of the market). Place an entry OCO order with the first order to buy (sell) low (high) at support (resistance) with a stop just below (above) peak low (high) and the second order to sell (buy) low (high) just below (above) the peak low (high) with a stop just above (below) support (resistance). An indicator such as RSI (buy at or below 30, sell at or above 70) or slow stochastics (buy at 20, sell at 80) may be used to increase chances of success by confirming entry points in the case of the range continuing.
Ranges in FX markets are notorious for false breaks- just be aware of that.
There’s a solid strategy which involves a range breakout, then 61.8 retracement of the breakout leg from the opposite side of the range. Sometimes you don’t get that retracement though.
Playing a pure range breakout is aggressive- a more conservative approach could be trading a breakout/pullback to prior structure levels.
IMHO, the range trading that you described can be done with breakout techniques (and indicators) too.
It can also be done by using fixed time such as determine the range based on the first 3 hours of London open, buy on the high of that box and sell on low. You can also do the reverse (sell on high/buy on low) but make sure the pair fits the volatility required.