What a mess the cable 4-hour chart has turned into

<p>Here is the four-hour chart of GBP/USD going back to December 12.</p><p>That's six weeks of trading hell.</p><p>Today it's now testing yesterday's high in a strong reversal on broad USD selling but this is the kind of chart where you do not want to get involved until it definitively breaks.</p><p>If it can get through the December high of 1.2828, it would be the highest since July and a nice breakout.</p><p>The Bank of England today was incrementally more dovish but hardly at the point where you can say rate cuts are imminent. </p><p>Update: SocGen recommended buying Vol Straddle on GBPUSD today because it's unusual for it to trade in a range for such a long time. I can't argue with that.</p><p>h/t @paul.</p>

This article was written by Adam Button at www.forexlive.com.