GBP/USD continues to be in a consolidation phase

On the hourly chart, the GBP/USD pair continues to be in the consolidation phase after an upward momentum that ended near the 1.3770 level. The current trade is taking place in a narrow range between the resistance of 1.3750 and the support of 1.3680. Holding above the MA (200) H1 moving average maintains the overall bullish mood, however, the absence of new highs and the fading momentum indicate a weakening of buying pressure. The MACD indicator maintains negative values, and the histogram levels off near zero, which signals a decrease in volatility and a possible trend change. If the 1.3680 level is broken down, the next support is around 1.3590. To restore the uptrend, the pair needs to gain a foothold above 1.3750 with a further target near 1.3770. In general, the market is showing indecision, and the further direction will depend on the ability of buyers to maintain key support levels.

Resistance levels are:  1.3750-70, 1.3835, 1.3910

Support levels are: 1.3680, 1.3590, 1.3510

The main scenario for the pair's advance suggests a breakout of the resistance at 1.3750-70 (June 26-27 highs) and there may be an increase to 1.3835 (Oct 26’ 2018 high)

An alternative scenario implies a decrease to 1.3680 (June 27 low) and there may be a decrease to 1.3590 (June 25 low).