On Friday, the GBP/USD continued to consolidate by trading sideways near the 1.2820 level.
The rate was expected to end the week trading sideways and make a move on Monday.
UK Monetary Policy
The British Pound depreciated against the US Dollar, following the UK Monetary Policy Summary release on Thursday at 12:00 GMT. The GBP/USD exchange currency rate lost 42 pips or 0.32% right after the release. The British Pound continued trading at the 1.2830 level against the US Dollar.
The Bank of England released the UK Official Bank Rate data, which came out in line with the expectations of 0.75%.
According to the official release: "The Monetary Policy Committee will, among other factors, monitor closely the responses of companies and households to Brexit developments as well as the prospects for a recovery in global growth. If global growth fails to stabilise or if Brexit uncertainties remain entrenched, monetary policy may need to reinforce the expected recovery in UK GDP growth and inflation."
Economic Calendar
There are no more data releases scheduled for this week, which could impact the currency exchange rate.Next week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
GBP/USD short-term review
On Thursday, the GBP/USD exchange rate declined to the 1.2800/1.2820 area. During today's morning, the rate was trading at the given area.From a theoretical point of view, it is likely that the British Pound could depreciate against the US Dollar within the short-term descending channel in the nearest future. A possible downside target is the psychological level at 1.2780.
It is unlikely that bulls could prevail in the market, and the currency pair could trade upwards in the nearest future due to the resistance cluster formed by the 55-, 100- and 200-hour SMAs, as well the weekly S1 in the 1.2842/1.2889 range.
Hourly Chart
On the daily candle chart, the rate is consolidating by trading sideways in the borders of a larger ascending channel pattern.
The consolidation is occurring in a recently spotted low angle channel down pattern, which could guide the pair until the end of November.
Daily chart
The sentiment had fluctuated only by one percent up or down during a whole week.
Meanwhile, trader orders were bullish. In the 100-pip range, 83% of orders were to buy and 17% were to sell.
On Thursday, the orders were 68% to buy.