The GBPUSD is trading around an important long term support level, and as you already know, when the market trades around an important LT level, it creates a short term range, in this case the pound-dollar’s range is from 1.6202 to 1.6072:
So basically what I’m waiting for is a breakout of either extreme of the range to start looking for a trade opportunity.
Here is my trading plan:
If the GBPUSD breaks the ST support level, I will be looking for short trade opportunities. My next LT support level is at 1.5806
If the GBPUSD breaks the ST resistance level, I will be looking for long opportunities (my next LT resistance level is too close, so need to make sure the trade has a good Risk-Reward ratio).
If the Pound-dollar keeps trading in between both ST levels I will do nothing.