**BREAKING: Pound Sterling Consolidates After Sharp Monday Rally, Holds Range**
The British pound surged during Monday’s trading session, reclaiming critical moving-average resistance levels that had capped every rally attempt since mid-July. The currency pushed toward the 1.3500 psychological level before momentum stalled. Since Monday’s breakout candle, sterling has traded entirely within that session’s range across the subsequent two trading days, establishing a tight consolidation pattern.
The lack of follow-through comes as British markets operate during the parliamentary recess period, reducing trading volumes and limiting fresh fundamental catalysts. Traders face uncertainty about whether Monday’s move signals a genuine trend reversal or merely another failed breakout attempt. The pound’s inability to breach 1.3500 despite breaking above multi-week moving-average resistance suggests waning bullish conviction in the near term.
Market participants should monitor whether sterling can maintain support above the reclaimed moving-average band or risks another rejection back into the July-established range.
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FXnCO Insight
** GBP traders should wait for a decisive close above 1.3500 or a break below Monday’s low before committing to directional positions amid thin holiday-period liquidity.
Source: FXStreet