During Thursday's morning London trading hours, the surge of the GBP/USD was about to touch a resistance cluster at the 1.2545 level.
At that level a monthly pivot point, upper trend line of a descending channel pattern and the 200-hour simple moving average will meet at midday.Latest Fundamental Event Report
The British Pound traded sideways against the US Dollar, following the GBP data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 5 pips or 0.04% right after the release. The British Pound continued trading at the 1.1.2475 level against the Greenback.
The Office for National Statistics released the UK GDP data, which came out in line with the expectations of 0.3%. Note, that the UK Manufacturing Production data was released at the same time. The data came out worse-than-expected of 1.4% compared with the forecast of 2.2%.
According to the head of GDP Rob Kent-Smith: "GDP grew moderately in the latest three months, with IT, communications and retail showing strength. Despite this, there has been a longer-term slowdown in the often-dominant services sector since summer 2018. The economy returned to growth in the month of May, following the fall seen in April. This was mainly due to the partial recovery in car production."
Minor US data ends the week
On Thursday, the US CPI and Core CPI data will be published at 12:30 GMT. The data release has caused moves from 14.8 to 26.6 pips since February.
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 9.0 to 35.6 pips. Although, note that the 35.6 pip move was actually caused by other announcement being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
GBP/USD short-term review
On Thursday morning, the GBP/USD was heading for a resistance cluster, which it should reach by 12:00 GMT.Namely, a cluster of a monthly pivot point, upper trend line of a descending channel pattern and the 200-hour simple moving average were set to meet at 1.1245.
Watch this level for future clues. A breaking of the resistance levels would result in a surge up to 1.2574.
A bounce off from these levels could result in a decline down to the 100-hour simple moving average, which during morning hours was located at 1.2505.
Hourly Chart
On the daily candle chart one can observe that the rate remains in the borders of a descending channel pattern. Namely, the pair is targeting the lower channel line.
The trend line was located on Wednesday at the 1.2420 level.
Daily chart
On Thursday morning, 75% of open position volume was long.
Meanwhile, trader set up pending orders in the 100-pip range were still bullish, as 58% of orders were set to buy.