The GBP/USD has dropped down the technical levels, which kept it up throughout the last couple of trading sessions.
On Friday, the pair had retreated down to the 100-hour SMA at 1.3010. If this support gets passed, the rate would drop down to 1.2975 where a weekly pivot point is located at.
The Federal Reserve released on Wednesday the US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet," the document said.
Only Canadian data is left
The week will end with the Canadian Core Retail Sales at 13:30 GMT on Friday.The event is scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The stream starts ten minutes before the data release.
For more information watch the weekly Calendar Analysis stream recording.
GBP/USD short term review
During the previous trading session, the rate passed through the 55-hour simple moving average to end the trading session at the 1.3000 as it was expected. On Friday morning, the British Pound was trading between the 55-hour and the 100-hour simple moving averages at the 1.3022 mark.In regards to the near-term future, most likely, the currency exchange rate will get the support of the 100-hour SMA to surge towards the resistance of the weekly R2 at 1.3060.
On the other hand, the 55-hour simple moving average could resist the British Pound to push the rate to trade sideways at the 1.3000 level.
Hourly Chart
On the daily chart it can be seen that the rate broke the resistance of the 200-day simple moving average. The SMA now was set to strengthen the support of the 1.3000 level.
Meanwhile, on Wednesday an ascending channel pattern was drawn on the daily chart. It was done by using the low levels of February and December and setting a parallel line on the high level of January.
This pattern could guide the rate higher. However, that is highly unlikely due to the fundamental background.
Daily chart
Meanwhile, the trader set up pending orders were neutral, as 51% of all orders in the 100-pip range were set to buy.