The GBP/USD has dropped down to the historical low level of 1.2090. The move broke the ascending channel pattern of the hourly candle chart.
The decline occurred, as soon as the pair failed to properly break the resistance of the 200-hour simple moving average. The rate only pierced this level.
Meanwhile, note that the move was still consistent with the pattern of the daily candle chart.
No more data this week
On Friday at 8:30 GMT, the UK GDP and Manufacturing Production was released. It caused a 33 pip move.
This event was the catalyst for the decline down to the 1.2090 level. A full report will be available during Friday's trading session in the Fundamental Analysis section.
GBP/USD short-term review
On Friday, the GBP/USD was expected to consolidate in the aftermath of the drop caused by the data release at 08:30 GMT.On the other hand, the rate could resume the decline and make an attempt to pass the historical low level of 1.2090.
If this level gets passed, the rate will next face the support of a weekly pivot point at 1.2038.
Hourly Chart
A review of the daily candle chart has revealed that the rate has been in a smaller scale descending channel pattern that represents the rate's sharper decline, which began at the start of May.
The pattern's lower trend line is strengthening the support of the weekly S1 at 1.2038.
Daily chart
Read More: Technical Analysis
Traders remain long
Since the middle of Wednesday's London trading session 72% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bullish as 64% of orders were set to buy and 36% were to sell.
The orders previously were neutral since Wednesday.
Meanwhile, trader set up pending orders in the 100-pip range were bullish as 64% of orders were set to buy and 36% were to sell.
The orders previously were neutral since Wednesday.