On Friday the GBP/USD was trading near the 1.3100 level. In general, the rate was still mostly reacting to fundamental Brexit news.
It makes sharp moves Brexit announcements. When the news have no new information, the currency exchange rate mostly trades sideways.
The British Pound depreciated against the US Dollar, following the UK CPI data released on Wednesday at 09:30 GMT. The GBP/USD exchange currency rate lost 13 pips or 0.10% during a minute, right after the release. The British Pound continued trading at the 1.3235 area against the US Dollar.
The Office for National Statistics released UK CPI data that came out better-than-expected of 1.9% compare with forecasted 1.8%.
Mike Hardie, head of inflation at the ONS, said: "The rate of inflation is stable, with a modest rise in food as well as alcohol and tobacco offset by clothing and footwear prices rising by less than they did a year ago."
Canadian data will close the week
On Friday, the last event of the week will be the Canadian CPI and Core Retail Sales release at 12:30 GMT.For more information watch this week's economic calendar analysis stream.
GBP/USD short term review
On Friday morning, the UK bounced off the resistance levels near the 1.3160 level.During the decline the rate reached the 1.3100 level. If this level gets passed, the pair would fall down to the 1.3045 mark.
On the other hand, the 1.3100 might hold and push the rate into testing the resistance of the monthly pivot point at 1.3130.
Hourly Chart
On the daily chart the rate recently got the support of the 55-day simple moving average, which together with the 200-day SMA force the pair into a retracement upwards.
On Friday, these levels were located, respectively, at 1.3045 and 1.2983.
Daily chart
Meanwhile, the pending orders are no longer bearish. Instead in the 100-pip range near the rate 54% of pending orders were set to buy.
The sentiment numbers on the Swiss Foreign Exchange largely had not changed throughout the week.