On Friday morning, the GBP/USD exchange rate was testing the 55-hour SMA located at the 1.2910 mark.
If the given resistance does not hold, it is likely, that the rate rises to the 100-hour SMA located circa 1.2940.
The British Pound appreciated against the US Dollar, following the UK Retail Sales data release on Thursday at 8:30 GMT. The GBP/USD exchange currency rate gained 16 pips or 0.13% right after the release. The British Pound continued trading at the 1.3010 level against the US Dollar.
Office for National Statistics released the UK Retail Sales data that came out better-than-expected of 1.1% compared with forecast –0.3%.
According to analysts, the unexpected increase in the UK retail sales was driven by Brexit uncertainty. It is likely, that consumers are undisturbed by the UK departure from the EU bloc. Consumers have supported the UK economic growth since the referendum.
Last week of the month
On Friday, at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the US currency.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
GBP/USD short-term review
Yesterday, the GBP/USD currency pair reversed north from the lower boundary of the falling wedge pattern at 1.2880. During today's morning, the pair tested the resistance of the 55-hour SMA at 1.2910.If the given simple average holds, it is likely, that the exchange rate reverses south and re-rests the lower pattern line. It is unlikely, that a breakout south could occur, as the pair is supported by the monthly S1 at 1.2872.
If the given resistance level does not hold, it is expected, that some upside potential prevails in the market. However, the rate has to surpass the resistance level formed by the 100-hour SMA, the Fibo 23.90% and the weekly S1 at 1.2947.
Hourly Chart
As apparent on the chart, the GBP/USD currency pair is still pressured by the 100- and 200-hour SMAs at 1.2970. Thus, it is unlikely, that a significant increase could occur in the short term.
It is expected, that the pair maintains its slump in the nearest future, pressured by the descending trend line.
However, the exchange rate has to surpass the support level – the monthly S1 at 1.2872.
Daily chart
Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 57% of all orders were set to sell.