The support levels, which kept up the GBP/USD previously, have failed. The currency exchange rate has fallen below the 1.3060 level.
Moreover, the technical analysis levels started to keep the rate from recovery by providing resistance near 1.3070.
The British Pound appreciated against the US Dollar, following the UK GDP data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.05% during a minute, right after the release. The British Pound continued trading at the 1.3065 area against the US Dollar.
Commenting on today's GDP figures, Head of GDP Rob Kent-Smith said: "GDP growth remained modest in the latest three months. Services again drove the economy, with a continued strong performance in IT. Manufacturing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months."
No data releases on Friday
This week's data releases have ended. Wait for Monday, as on that day Dukascopy Analytics will publish the weekly Economic Calendar Overview. In the video all of the next week's data releases will be reviewed and question can be asked in the comments.Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
GBP/USD short term review
The currency exchange rate has fallen below the technical levels that provided support to the rate on Thursday.Due to the fact that the GBP/USD had no technical support as low as the 1.3020 level a decline of almost 40 base points was expected.
On the other hand, the GBP/USD is still heavily influenced by Brexit announcements. Positive news could push the rate upwards.
Hourly Chart
On the daily chart the rate is being pushed down by the resistance of the 55-day simple moving average, which on Friday was located at 1.3096.
Meanwhile, the 200-day SMA no longer was close enough to support the currency exchange rate. Due to this development the rate was only supported by the lower trend line of a large scale pattern near 1.3050.
Daily chart
Since Monday, the total open position volume proportion at the Swiss Foreign Exchange was 51% long.
On Thursday, the sentiment became balanced. 50% were short and the other 50% were long. It had not changed on Friday.
In addition, the pending orders in the 100-pip range from the rate were also neutral. Namely, 52% of orders in that range were set to buy.