FX.co ★ GBP/USD update for February 02, 2022 - Breakout in play

Technical analysis:

GBP/USD has been trading sideways going into end of the Europe session, which is sign of indecision. Watch for the breakout is good strategy under the balanced condition.

Trading recommendation:

Due to the multi-hour contraction, I see potential for the breakout play.

Upside breakout of multi-hour resistance at the price of 1,3586 can lead us for test of 1,3650. Upside opportunities on the pullbacks in this case would be preferable

Downside breakout of support at the price of 1,3550 can lead GBP towards 1,3520 and 1,3475. Downside opportunities on the rallies in this case would be preferable strategy.