I see a similar situation on the GBP/USD as I do on the GBP/JPY in that I think both pairs have found support and are now on the verge of moving back up in the direction of the uptrend. This means that my bias is to look for buys on both pairs. Identifying a range bound market is much easier after the fact. It seems that by the time we are able to confirm the range bound situation, the market is about to break out of that range. To me, that makes them harder to trade. I am sure that there are other traders who think that trends are harder to identify and trade than range bound markets, but we all see things differently. I try to find the most obvious market environments to trade. If there is any doubt, I move onto another pair. What I try not to do is to fit a pair into a situation that I would like; otherwise don't force an uptrend when the market is directionless. Just pick the "easy" ones to trade. The use of trendlines like I have on this chart can be of great help also as they frame the recent activity in a way to get a better feel of the mood of the market. The best advice I can give you is to be picky about how you identify a trend or a range. Your trading results can improve by waiting for the obvious trades to come to you instead of trying to force them.

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