A decline in the value of the USD that was caused by the Federal Reserve has pushed the GBP/USD up to the resistance of a large scale descending pattern.
The resistance of the channel down pattern was located at the 1.2720 level. The future forecasts are based on what happens at this level.
The British Pound appreciated against the US Dollar, following the UK CPI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 13 pips or 0.11% right after the release. The British Pound continued trading at the 1.2585 level against the Greenback.
Office for National Statistics released the UK CPI data, which came out in line with expectations of 2.0%.
According to the official release: "Falling fares for transport services, particularly air fares influenced by the timing of Easter in April, and falling car prices produced the largest downward contributions to the change in the rate between April and May 2019. Partially offsetting upward contributions came from rising prices for a range of games, toys and hobbies, furniture and furnishings, and accommodation services."
No more impacting data this week
There are no more significant to the GDP/USD events scheduled for this week.
On Monday, Dukascopy Analytics will publish the next week's Economic Calendar Overview. It will be published on the Dukascopy Webinars YouTube channel.
GBP/USD short-term review
On Thursday, the GBP/USD stood at the resistance line of the medium scale descending channel pattern near 1.2720.If this resistance would get passed, the currency exchange rate should in theory reach for the resistance of the 1.2760 level.
On the other hand, the rate is more likely going to trade in accordance with the pattern. In that case the pair would pass the support of the weekly R1 at 1.2708 and the psychological support of 1.2700. Afterwards there would be no support levels as low as 1.2645.
Hourly Chart
On the daily candle chart one can observe that the rate is oversold, as the daily simple moving averages were located far above the current currency exchange rate.
Meanwhile, the pair still remains in a large scale descending channel pattern.
Daily chart
On Wednesday, 71% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment had increased to 72%. It can be assumed that most traders profited from the Fed's caused surge.
Meanwhile, trader set up pending orders in the 100-pip range were mostly set to sell, as 72% of orders were set to sell.