During Thursday, the GBP/USD exchange rate dropped below the 1.2450 level.
It is likely that some downside potential could prevail as the rate is pressured by the 55-hour SMA.
Economic Calendar
Next week, there are a couple of events, which could impact the GBP/USD currency exchange rate.
On Tuesday, the UK Flash Manufacturing and Services PMIs survey results will be published at 8:30 GMT. Meanwhile, the US Flash Manufacturing PMI survey results will be released at 13:45 GMT.
On Thursday, macroeconomic data set release from the US could impact the market. The US Durable Goods Orders, Final GDP and Unemployment Claims data are set to be published at 12:30 GMT.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate dropped to the support formed by the Fibo 50.00% and the weekly S1 at 1.2420. During Friday morning, the rate was testing the given level.If the predetermined support holds, it is likely that a reversal north could occur. Meanwhile, it is unlikely that the currency pair could exceed the 55-hour SMA near 1.2500.
Otherwise, it is likely that some downside potential could continue to prevail in the market. In this case the exchange rate could gain support from the monthly PP at 1.2346.
Hourly Chart
On the daily candle chart, the GBP/USD rate declined below the 100-day simple moving average near 1.2520.
Meanwhile, the rate could gain support from the monthly PP at 1.2346.
Daily chart
Read More: Technical Analysis
Swiss traders short GBP/USD
On Thursday, 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 53% short.
Meanwhile, in the 100-pip range around the rate, 51% of pending orders were set to buy the GBP/USD.
On Friday, the sentiment was 53% short.
Meanwhile, in the 100-pip range around the rate, 51% of pending orders were set to buy the GBP/USD.