FX.co ★ dusty24 | GBP/USD

I am looking at the GBP/USD pair on the four-hour chart. When the pair broke above the resistance at 1.27909, I considered the pound to be overbought because when the pair was trading below the resistance, the Bank of England had not yet mentioned anything about halting the tightening of monetary policy. But then, when they started talking about easing monetary policy, the pair for some reason moved towards the resistance at 1.28914. To me, this seemed at least inappropriate, and I assumed that the pair would go towards the lower boundaries of the grey range. We can see that it has already reached there, especially since inflation did not allow the pair to rise significantly and I assumed it would continue trading within a range. So, I concluded that since inflation had stagnated, it had stopped. It was not decreasing further, not increasing, staying within the range of three and zero and three and five percent for quite a decent amount of time. And when it dropped to the support at 1.23160, I considered it to be oversold. I assumed that the pair would move upwards and return to this grey range. Currently, it is trading near the lower boundary of this grey range, and I anticipate it will return back to the range, heading towards the resistance at 1.27909.