Quick look: GBP/USD awaits range breakout

GBP/USD hourly chart

GBPUSD H1 (03-09-2016 2145)

Patience is required now since the bird has established a 63- pip range of 1.4178-1.4241

GBP’s failure to take out 1.4241 could send prices back to 1.4178. The odds of a fakeout or failure to take out are high, given the bearish price-RSI divergence seen on the hourly chart.

If the lower end of the range – 1.4178 (also 23.6% of 1.3835-1.4284) would add credence to bearish price-RSI divergence and trigger a drop to 1.4142.

I would not hesitate to enter a short at the upper end of the range.

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