GBP/USD Neutral

GBP/USD is not showing any clear signs indicating where it will head next. After Article 50 was triggered, the pair did not react in any way thus causing traders and investors to guesswork their direction.

What actually happened after Art 50 was a consolidation in a narrow channel between 1.2570 and 1.2370. The pair is now trading at 1.2482, right in between the upper and lower trading line.

Major bull target is seen at 1.2670, while major bear target rests at 1.2040. Today's GBP news turned out to be positive for the UK and that reflected in appreciation of the pair, but only mildly. Sterling bulls will need something stronger in order for them to power through and reclaim their level above 1.27.

Chart: GBP/USD H4