The fundamental surge of the GBP/USD ended at the 1.2525 level. After attempting to pass this level for five hours, the rate began a decline.
By the middle of Friday's GMT trading hours, the rate had reached the 1.2450 level.
GBP Appreciated 2.20%
Measured Surge
The first reason for the advance might be the UK Prime Minister Boris Johnson's announcement. The British Prime Minister revealed new planning rules to increase the number of homes, as well approve commercial premises to be repurposed more easily. The given measures are supposed to support the coronavirus-hit economy.
Additionally, the British Pound could gain support, as the Purchasing Managers Index survey for June showed evolving manufacturing recovery.
Economic Calendar
Next week, notable macroeconomic data releases are set to start on Monday at 14:00 GMT. The US ISM Non-Manufacturing PMI is scheduled to be released. In June, it caused a 29.1 pip move on the GBP/USD.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate revealed corrected medium-term descending channel.From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the currency pair could decline to the psychological level at 1.2350.
Meanwhile, note that the exchange rate could gain support from the 100– and 200-hour SMAs, as well the Fibo 50.00% and weekly PP in the 1.2400. If the given support holds, it is likely that the rate could consolidate.
Hourly Chart
On the daily candle chart, the rate has ended its decline, which was guided by a channel down pattern. The pattern represented the Bank of England's monetary easing efforts.
In the meantime, take into account that the 55 and 100-day simple moving averages could provide support to the currency exchange rate.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since Thursday, 58% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate, 57% of pending orders were set to buy the GBP/USD.
The orders were 70% to sell on Thursday.
It appears that the rate was close to the take profits of the majority of the long traders. Moreover, there were orders of traders that intended to open new long positions.
Meanwhile, in the 100-pip range around the rate, 57% of pending orders were set to buy the GBP/USD.
The orders were 70% to sell on Thursday.
It appears that the rate was close to the take profits of the majority of the long traders. Moreover, there were orders of traders that intended to open new long positions.