Since the middle of Thursday's trading session the GBP/USD has been making attempts to pass the resistance of the 55-hour simple moving average.
In general, the rate was expected to be pushed down as soon as the 100-hour simple moving average approaches and provides additional technical resistance.
The Federal Reserve released the Federal Funds Rate data, which came out in line with the expectations of 2.25%.
During the press conference the Fed Chairman Jerome Powell said a recent rate cut is not the start of a long series of rate cuts. He suggested that a global economic slowdown, the US trade tensions and a need to boost low inflation are the reasons why the US policymakers decided to lower the rate. Thus, the US Dollar appreciated against the Euro.
US Employment data
On Friday, the US employment data will be published. It will consist of the US Average Hourly EARNINGS, Non-Farm Employment Change and the official Unemployment Rate. This release has caused moves from 14.8 to 34.1 base points.
GBP/USD short-term review
By the middle of Friday's London trading session the GBP/USD was making attempts to pass the 55-hour SMA at 1.2145. From below, the rate was supported by the psychological support of the 1.2100 level.Meanwhile, the 100-hour simple moving average was approaching from the above. Due to that reason it was expected that the currency exchange rate will decline as soon as the SMA reaches the pair.
On the other hand, the rate might continue to trade sideways and get squeezed in between the SMAs and the 1.2100 level until next week.
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 1.2100 level.
Daily chart
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 55% of orders were set to buy and 45% were to sell.