GBP/USD stuck in a range below 1.4300 handle

Despite of a sudden turn-around in the sentiment surrounding the British Pound, after Thursday's incidence of the shooting of Jo Cox, the GBP/USD pair is finding it difficult to sustain its move above 1.4300 handle. 

Currently trading at 1.4265, the pair has trimmed nearly 45-pips from session high level of 1.4310 touched during European session despite of receding 'Brexit' fears.

Moreover, sterling bulls have also failed to tighten their grip even after the release of mostly in-line with estimates US housing market data, which failed to provide any respite for the greenback.

From technical perspective, the pair seems to have stuck within a broad trading range between 1.4220-1.4300 region. The range-bound movement now seems to constitute towards formation of a rectangular consolidation pattern, indicating that the next leg of movement would be determined only once the pair breaks past this trading range.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "The 4 hours chart shows that the price is above its 20 SMA, whilst the technical indicators have lost upward strength within positive territory, limiting at this point chances of an upward breakout."

"The weekly high was set last Monday at 1.4327, the level to beat to see another leg higher up to 1.4370. Below 1.4205 on the other hand, the pair will likely return to the 1.4160 region."