Sterling has carved out gains versus the dollar in the shorter-term but the future for the pound might now lie with the longer-term technical picture.
The forex space is dominated by range bound markets and this despite geopolitical risk, central bank policy and COVID-19 concerns.
As U.S. taper speculation calms the focus will return to global growth and the risks from the Delta variant.
This scenario is unlikely to alter the range bound condition.
It might take the breaking of key technical levels to drive GBP/USD into new ground and the monthly chart holds promise.
Failure to hold the May-June highs above 1.4000 puts sterling at risk of a cloud breach.
The pound broke above its Ichimoku cloud in February and has looked uncomfortable since.
The cloud top is at 1.3710 and a close below would significantly increase bearish risk.
Daily action broke above the 200-day moving average last week, a bullish signal.
However, the last Fibonacci retrace level off the 1.3983-1.3602 drop is intact at 1.3893 and the daily Ichimoku cloud top remains in place at 1.3911.
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