Bank of England was the cause of a surge, which was previously expected from a technical perspective.
By the middle of Friday's trading the GBP/USD had reached and bounced off the resistance of the 23.60% Fibonacci retracement level at 1.2573.
Economic Calendar
Next week on Thursday, the US Final GDP will be published at 12:30 GMT. This event has caused moves on the GBP/USD from 8.1 to 52.00 pips since June 2018.
Note that during the last two releases the pair moved the least and the most 8.1 and 52.0 pips.
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the GBP/USD moved from 6.5 to 15.1 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
GBP/USD short-term review
The GBP/USD has bounced off the resistance of a 23.60% Fibonacci retracement level at 1.2573. The event resulted in a decline, which on Friday morning was heading to the 1.2500 level.It was expected that the rate would find support in the 1.2500 mark. Which was strengthened by the 55-hour simple moving average. Moreover, the 100-hour SMA was providing support at 1.2475.
On the other hand, if the GBP/USD falls below these support levels, it could decline to the monthly pivot point at 1.2460.
Hourly Chart
On the daily candle chart, the rate has broken the 100-day simple moving average after being put down by it for four consecutive trading sessions.
Next target on the daily chart is the cluster of resistance levels at 1.2600.
Meanwhile, the 100-day SMA should begin to provide technical support at 1.2495.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since the middle of Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were mostly bearish, as 77% of orders were set to sell and 27% were to buy.
Previously, 54% of trader orders were to sell.
Since the middle of Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were mostly bearish, as 77% of orders were set to sell and 27% were to buy.
Previously, 54% of trader orders were to sell.