The decline of the GBP/USD eventually stopped at the 1.2550 mark. From there it began a recovery, which had ended by the middle of Friday's GMT trading hours.
In the near term future, the rate was expected to reach new low levels.
Economic Calendar
Next week, there are a lot of events, which could impact the GBP/USD currency exchange rate.
Already on Tuesday, at 06:00 GMT the UK Average Earnings index could cause a move from 16.2 to 27.8 base points.
On the same day, at 12:30 GMT the US Retail Sales might cause a notable reaction, as it did so in March and April.
On Wednesday morning, at 06:00 GMT the UK Consumer Price Index is bound to be released. Its impact has declined in the last months. However, prior to that it caused moves above 30 pips in just five minutes.
On Thursday, the future of the GBP is set to be revealed. The Bank of England will make a rate announcement at 11:00 GMT. Expect a move of around 50 pips just on the announcement.
Afterwards, take a look at the US Unemployment Claims at 12:30 GMT. A notable reaction is possible, as a surprise number could cause a notable move.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate dropped to the 1.2550 level. During Friday morning, the rate was testing the resistance level formed by the 200-hour SMA and the Fibo 61.80% at 1.2646.If the given level holds, it is likely that a reversal south could occur in the nearest future. In this case the currency pair could gain support from the weekly PP at 1.2576.
If the support level holds, it is likely that the pair could consolidate in the short term. Otherwise, it is likely that the rate could decline below the 1.2550 mark.
Hourly Chart
On the daily candle chart, the currency exchange rate has passed the 200-day simple moving average at the 1.2685.
On Friday, the 100-day simple moving average provided support at the 1.2550 level.
Daily chart
Read More: Technical Analysis
Swiss traders short GBP/USD
Since Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate, 84% of pending orders were set to sell the GBP/USD.
Previously, 70% of orders were to sell.
Meanwhile, in the 100-pip range around the rate, 84% of pending orders were set to sell the GBP/USD.
Previously, 70% of orders were to sell.