• Barring an intraday spike on Monday, the pair has been struggling to make it through 200-hour SMA and remained confined in a broader trading range around the 1.3200 handle.
• The range-bound price action over the past 24-hours or so constituted to the formation of a rectangle on the 1-hourly chart, indicating a brief pause in the trend - bullish in this case.
• Usually considered as a continuation pattern, a rectangle can also mark trend significant tops and thus, warrant caution amid neutral technical indicators on hourly/daily charts.
• Hence, it would be prudent to wait for a sustained break through the mentioned trading range before traders start positioning for the pair's next leg of a directional move.
GBP/USD 1-hourly chart
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