GBP/USD Darvas Box is in support of volatility growth above 1.26
The 200-EMA's overlap with the cable price contributes to the consolidation filtering. The Darvas Box formation is approaching an acute volatility squeeze. A range between 40.00 and 60.00 on the RSI (14) indicates the lack of momentum in the counter.

In Tokyo, the GBP/USD pair oscillates within a tight band of 1.2530-1.2550. After attempting to surpass the crucial barrier of 1.2600 on Wednesday, the cable had a strong selling reaction. A balanced market profile indicates an impending consolidation.
On an hourly scale, the emergence of a Darvas Box chart pattern indicates a compression of the standard deviation. The asset has fluctuated between 1.2430 and 1.2600 over the previous two weeks. Typically, the construction of a Darvas box after a vertical upward rise indicates the existence of initiative buyers, who have the capacity to drive the asset higher.
The 200-period Exponential Moving Average (EMA) is converging with the cable price around 1.2544, which increases the likelihood of future consolidation.
In addition, the Relative Strength Index (RSI) (14) in the region of 40.00 to 60.00 anticipates a continuation of a poor performance.
An upside break of the Darvas Box above the weekly highs at 1.2600 will push the asset towards the high for the month of May and the round-level resistance at 1.2667 and 1.2700, respectively.
If the asset falls below Tuesday's low of 1.2430, the bulls of the pound might lose their grasp. This will pull the major to a high of 1.2400 on May 11 and a low of 1.2280 on May 18.
GBP/USD
Bonus rebate to help investors grow in the trading world!