The GBPUSD pair went back and forth during the course of the day on Monday, showing signs of confusion.

With this being the case, the market looks as if it is going to continue to consolidate sideways, and as a result it looks as if any rally will more than likely be a selling opportunity.

If we can break down below the 1.30 level, I think we could then reach towards the 1.28 level, which is the bottom of the support, and a break down below there is a longer-term sell signal.

I believe that the 1.35 level above is the “ceiling” in this market.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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