On Thursday, the GBP/USD was consolidating its gains by trading sideways.
The sideways trading was expected to end as soon as the 55-hour simple moving average approaches the currency pair from the below.
The Federal Reserve released on Wednesday the US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet," the document said.
Only US GDP will influence the GBP/USD
As it is accustomed, the last week of the month is set to be quiet for fundamental macroeconomic data releases.
On Thursday the US Advance GDP will be released at 13:30 GMT. This event can cause moves of around 20 base points.
On Friday, the Canadian GDP data will be out at 13:30 GMT. It is most likely set to be the event which will cause the biggest move during this week.
For more information watch the weekly calendar analysis stream on our YouTube channel.
GBP/USD short term review
The surge of the GBP/USD had turned into a consolidation on Thursday. Namely, after touching the 1.3350 level the rate slightly declined and afterwards began to trade sideways.On Thursday, during the morning hour the rate was set to meet with the support of the 55-hour SMA. This technical support could push the pair higher.
On the other hand, if the pair passes the support of the 55-hour SMA, it could decline down to the weekly R2 at 1.3238.
Hourly Chart
On the daily chart the recent moves have been consistent with a dominant ascending pattern that was drawn by our analyst last Wednesday.
Although, take into account that, as the Brexit deadline approaches, all patterns are expected to be less and less relative.
Daily chart
On Thursday, the situation changed, as the 70% of total open position volume on the Swiss Foreign exchange was shorting the GBP/USD.
More short positions have showed up, as the rate has begun to retreat down from the reached 1.3350 high.
Meanwhile, the pending sell orders that were present previously are gone. The set up buy and sell orders in the 100-pip range were balanced 50/50 on Thursday.