The GBP/USD has remained in the range between the 1.3000 and the 1.3020 levels. The pair has consolidated its position after the recent decline.
In general, the rate was expected to decline as soon as the hourly candle chart's simple moving averages approach it from above and push it down. In that case the 1.2940 level would be targeted.
On Thursday, May 2, the Bank of England Monetary Policy Committee voted to hold the Bank Rate unchanged at 0.75%.
According to the Bank of England Inflation Report, the UK CPI inflation is falling moderately below the medium-term target of 2%. However, inflationary pressure is expected to lessen later this year, as the British Pound might recover from the fall in world trade and business confidence.
The Bank's decision might indicate the start of smooth transition to new trading relationships with the EU bloc.
UK data on Friday a top priority for GBP/USD
On Thursday, at 12:30 GMT the Canadian Trade Balance and the US Producers Price Index will be released. These events can cause a move from five to eighty pips. The range is explained in the weekly Economic Calendar Overview video.On Friday, there will be two times to watch the calendar.
At 08:30 GMT the UK GDP and Manufacturing Production will be published. This event can cause a move of fifteen to twenty pips.
At 12:30 GMT the Canadian Employment data will cause a move of about forty pips. At the same time the US Consumer Price Index release should cause a move of up to twenty pips. Combined they can have various impacts on the Forex market.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
GBP/USD short-term review
On Thursday, the rate was located at the 1.3000 level. As the review was being written, that level was pierced.The rate was heading to the 1.2940 level, as it had no support as low as that level.
Meanwhile, note that the move down can occur in various ways. The rate can drop, slide down slowly or even surge back to confirm the 1.3000 level as a resistance.
Hourly Chart
On the daily candle chart on Thursday the rate had pierced the support of the 100-day simple moving average at 1.3000.
Meanwhile, the daily chart reveals that the 200-day simple moving average was located at 1.2960. This level is in fact the most close by support.
Daily chart
Meanwhile, trader set up pending orders in the 100-pip range had become neutral.