The GBP/USD did not continue its surge on Thursday. Instead, at 14:00 GMT, the rate began a decline. On Friday, the rate's decline had reached below the 1.2580 mark.
On Friday morning, the rate had a few possible future scenarios.
Economic Calendar
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Next week, data releases are scheduled to start on Tuesday. However, the UK GDP and the US CPI data sets have not caused notable moves. Normal volatility remains intact during these announcements.
On Wednesday, it is possible that the UK CPI causes a minor increase of volatility at 06:00 GMT.
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
The week will end with the UK Retail Sales release at 08:30 GMT. Detailed data with moves in pips throughout the last half a year can be examined by clicking on the link below.
GBP/USD short-term review
On Friday morning, the rate was testing the resistance of a pivot point and the 55-hour SMA near 1.2600 level.If this level would fail to provide resistance, the pair could reach for the 1.2660 level, which provided resistance on Thursday.
On the other hand, the rate might trade sideways between the mentioned resistance and the support of the 100-hour SMA.
Hourly Chart
On the daily candle chart, the rate has additional support in the 55 and 100-day simple moving averages. The SMAs were located at the 1.2440 level.
In the meantime, the 200-day simple moving average was strengthening the resistance of the 1.2700 level.
Daily chart
Read More: Technical Analysis
Traders remain long
On Friday, 55% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 62% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 62% of pending orders were set to buy the GBP/USD.