GBP/USD Heading For Support on 700 Pip Range

The British Pound had been trading below the 200-period moving average since against the U.S. Dollar July 2008. In may it broke through the upside and has continued to trade in this territory since. After trading higher for five of seven days price action managed to confine itself to a 700 pip range between 1.5956 and 1.6627. The stochastic oscillator also happened to fade from ‘overbought’ territory once the pair hit our identified range resistance. It now appears that this oscillator has yet to pick a directional bias.