The GBP/USD has broken the previously active descending channel pattern. The event resulted in a test of the 1.2570 level, which managed to hold and cause a decline.By the middle of Friday's trading session, the GBP/USD was about to get squeezed in between the 55 and 200-hour simple moving averages near the 1.2530 level.
The Federal Reserve released the US FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.
According to the official release: "Investors' concerns about downside risks to the economic outlook weighed on financial markets over the intermeeting period. Market participants cited negative news about international trade tensions and, to a lesser extent, soft U.S. and foreign economic data as factors that contributed to these developments.
Nominal Treasury yields posted notable declines and the expected path of policy shifted down considerably over the period. Equity prices declined, on net, and corporate bond spreads widened. However, financing conditions for businesses and households generally remained supportive of economic growth."
US data ends the week
GBP/USD short-term reviewDuring the previous trading session, the GBP/USD exchange rate tested the weekly PP at 1.2574. During today's morning, the pair was testing the resistance level formed by the 200-hour SMA and the monthly S1 at 1.2545.