On Thursday, the GBP/USD surged up to the 1.2490 level in a sharp move that occurred as soon as the resistance of the 55-hour simple moving average was passed.
At the 1.2490 level the rate was stopped by the combination of the 100 and 200-hour simple moving averages and a weekly pivot point.Latest Fundamental Event Report
The British Pound traded depreciated against the US Dollar, following the UK CPI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate lost 11 pips or 0.09% right after the release. The British Pound continued trading at the 1.1240 level against the Greenback.
The Office for National Statistics released the UK CPI data, which came out in line with the expectations of 2.0%.
According to the official release: "The largest downward contributions to change in the 12-month rate between May and June 2019 came from motor fuels, accommodation services and electricity, gas and other fuels, with prices in each category falling between May and June 2019 compared with price rises between the same two months a year ago."
No more data this week
On Thursday morning, the UK Retail Sales were published at 08:30 GMT. That was the last data release this week, which will impact the currency exchange rate.
Meanwhile, note that the next week will be reviewed on Friday at 12:00 GMT in an Economic Calendar Overview.
GBP/USD short-term review
On Thursday morning, the GBP/USD was located below the 1.2490 level. At that level a resistance cluster made up of the 100 and 200-hour simple moving averages and a weekly pivot point was located at.If the cluster is broken, the rate would surge to the next technical resistance levels that are located t 1.2534 and 1.2545.
If the resistance manages to hold, the rate would retrace back down to the 55-hour SMA, which during the London trading morning hours was located below the 1.2440 level.
Hourly Chart
On the daily candle chart, the dominant descending channel pattern's lower trend line caused the recent surge by providing support. The trend line was also strengthened by the weekly and monthly second support levels.
Meanwhile, note that the daily simple moving averages are far above the currency pair, indicating that the pair is oversold.
Daily chart
Since Tuesday, 73% of open GBP/USD position volume was in long positions. Despite the drop, traders stuck to long positions.
The situation changed on Thursday, as 70% of open position volume was in long positions. Some traders had closed their long positions during the recent surge.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 52% of orders were set to buy. Previously, 60% of orders were to buy.