Taking the analysis on the Dollar Index into consideration (note the Dxy I use is not weighted) we have Dollar pairs trading in a similar fashion. When looking at GBPUSD daily you will notice that price is currently in the middle of the range with the future strength or weakness of the Dollar to decide the direction of the next trend. As with our view on the Dollar, one could wait for price to be at support (bottom of the range) or resistance (top of the range) or wait for a breakout.
Below are the scenarios for bulls and bears for the week ahead. I have also included a view of March with next month’s pivot points taken into consideration.