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GBP/USD 4H Chart 8/13/2012 7:40AM EDT

"GBP/USD

The title might as well by GBP/USD chopping it's way toward key resistance at 1.5775. The market in August has been a choppy one, but we can see that price action falling into a slightly rising channel since last week.

However, the non-committal nature of this slow rally kept the RSI stuck between 40 and 60, showing directionless momentum. Even if the 4H RSI reading pops above 60 and tags 70, we should note that it has been tagging 70 then 30, back and forth without building any momentum. Therefore, the 1.5775 resistance for the recent short-medium term consolidation should be monitored.

The daily chart shows that 1.5775 has held price under it since end of May, tested as resistance in June and July. A break above 1.5775 suggests a bottom has been put in place for a short to medium term bullish scenario.

GBP/USD Daily Chart 8/13/2012 7:48AM EDT

"GBP/USD

Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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