The decline of the GBP/USD has reached new low level. The 1.2610 level was reached on Thursday.
The rate was consolidating after reaching the low level. It was expected that the decline will resume once the 55 and 100-hour simple moving averages approach the pair from above.
The British Pound traded sideways against the US Dollar, following the UK CPI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate lost 10 pips or 0.08% right after the release. The British Pound continued trading at the 1.2670 level against the Greenback.
Office for National Statistics released the UK CPI data, which came out worse-than-expected of 2.1% compared with forecast 2.2%.
According to the official release: "Rising energy prices and air fares, which were influenced by the timing of Easter, produced the largest upward contributions to change in the rate between March and April 2019. The largest, offsetting, downward contribution came from across a range of recreational and cultural items, which included computer games and package holidays."
Only US data left
The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only nine to 20.5 pips.GBP/USD short-term review
During the previous trading session, the GBP/USD exchange rate traded sideways around the 1.2660 level. During Thursday's morning, the rate declined to the support level—the weekly S1 at 1.2610.If the given support does not hold, it is likely, that the currency pair could maintain its slump. Note, that the nearest support level is the monthly S3 at 1.2539.
Otherwise, it is expected, that the pair could trade sideways between the given support level at the psychological level at the 1.2660 mark.
Also, it is unlikely, that the rate could jump higher than 1.2700 due to the resistance formed by the 55– and 100-hour SMAs, as well the monthly S2.
Hourly Chart
On the daily candle chart, the GBP/USD has broken the lower trend line of a descending channel pattern.
The rate continued the decline after the braking of the pattern.
Meanwhile, the rate has fallen fall below the daily simple moving averages, which is a clear signal that the rate has been oversold.
Daily chart
Previously, 69% of traders were long. More go long, as the pair declines.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 59% of orders were set to sell.