A combination of support provided by the 55 and 100-hour simple moving averages caused a surge of the GBP/USD currency exchange rate.
By the middle of Friday's GMT trading hours, the rate was making a second test of the resistance of a pivot point at 1.2678.
Economic Calendar
The week will end with the US Employment data set release on Friday 12:30 GMT.
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a 4 EUR/USD pip move, which is below normal volatility.
On Friday, some might watch the 06:00 release of UK GDP and Manufacturing Production. This event could cause a move of GBP/USD from 11.9 to 29.8 base points.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 55-hour moving average near 1.2580 and trade upwards in the short run. In this case the pair could exceed the 1.2750 level.However, if the weekly R3 holds at 1.2678, it is likely that the British Pound could trade sideways against the US Dollar within the following trading session.
Meanwhile, it is unlikely that bears could prevail in the market, and the pair could decline below the 100-hour SMA and the weekly R2 at 1.2536.
Hourly Chart
On the daily candle chart, on Friday, the rate was testing the resistance of the 200-day simple moving average, which was strengthening the resistance of the previously described weekly R3.
Daily chart
Read More: Technical Analysis
Traders short the GBP/USD
On Friday, the sentiment on the Swiss Foreign Exchange was 63% short.
In the meantime, on the Swiss Foreign Exchange in the 100-pip range around the rate, 68% of pending orders were set to sell the GBP/USD.
The orders were 54% to sell on Thursday.
In the meantime, on the Swiss Foreign Exchange in the 100-pip range around the rate, 68% of pending orders were set to sell the GBP/USD.
The orders were 54% to sell on Thursday.