The GBPUSD is back higher, erasing all of day's declines and trades back at/near unchanged. The move back higher has taken the price back to the 200 hour MA at 1.2440. The high just reached 1.24418 and the current price is at 1.2435.
For the trading week, the low was on Monday at 1.2352. The high was on Wednesday at 1.2473. The total range of 121 pips is the lowest range since the week of November 14, 2021 when the range was 117 pips. It is a non trending week with plenty of ups and downs from day to day, and also within trading days.
When the market non-trends it says traders simply don't know which way it wants to go at current levels. That is the bad news. The good news is that the feeling does not last forever. The market makes up its mind. It might be something fundamental that provides the catalyst. It might simply be a breakout from a technical perspective (in reality there WILL be a breakout from a technical perspective with a fundamental reason or not).
What do traders need to do?
Look for a break. Anticipated break. Moreover look for some sort of trend type move. That is not focus on the non trend to continue, but the market to move away.
Non-trending markets transition to trending markets. The market has been non-trending. The extremes for the week are obvious breakout points. At the downside, the low price this week stalled within a swing area between 1.2343 and 1.23603. On topside, the high for the week stalled within a swing area as well between 1.2471 and 1.2476.
Traders (i.e. "the market") used the top and bottom swing areas to lean against this week (sellers at the top swing area, and buyers near the lower swing area). It won't likely do the same next week. Traders will get tired of the range and find the story/reason that will push the market.
So be aware. Anticipate a break and run. Hopefully, that leads to a range for next week that is something much higher than 121 pips. As a guide, the high range in 2023 has been 371 pips. The midpoint range would be 246 pips.
I am not saying we will get that type of range, but I would expect certainly expect something greater than the 121 pips. If you anticipate that and understand the break points, it might set you up for a good trade next week.