The breaking of the resistance of the 200-hour SMA resulted in the GBP/USD almost reaching the 1.2890 level.
By the middle of Friday's trading the rate had retreated from this level and fluctuated in a 20 pip range without any support or technical levels keeping it in certain borders.
UK Consumer Price Index
The British Pound traded sideways against the US Dollar, following the UK CPI data release on Wednesday at 09:30 GMT. The GBP/USD exchange currency rate lost 7 pips or 0.05% right after the release. The British Pound continued trading at the 1.2850 level against the Greenback.
The Office for National Statistics released the UK CPI data, which came out worse-than-expected of 1.5% compared with the forecast of 1.6%.
According to the official release: "The largest downward contribution to change in the CPIH 12-month inflation rate, between September and October 2019, came from electricity, gas and other fuels as a result of changes to the energy price cap. Further downward contributions from furniture, household equipment and maintenance; and recreation and culture, were partially offset by rises in clothing and footwear prices."
Economic Calendar
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 10.5 to 87.4 pips. The last event was an anomaly created by more than one data set being released at the same time. Instead expect a move around 13.7 to 24.3 pips.
Next week, the GBP/USD is expected to be impacted by one event.
On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT. Since April, the rate has moved from 7.4 to 14.6 pips in the five minutes following the release.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate increased to the 1.2880 level. During Friday morning, the rate was trading at the given level.Note that the currency pair is supported by the 55-, 100– and 200-hour moving averages, currently located circa 1.2850. Thus, some upside potential could prevail in the market. In this case the pair has to surpass the resistance level formed by the weekly R1 at 1.2895.
However, if the given resistance level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term. Also, it is unlikely that bears could prevail, and the rate could drop lower than the weekly PP at 1.2832.
Hourly Chart
On the daily candle chart, the rate is surging in the borders of a medium size channel down pattern. The surge is expected to reach the upper trend line of the pattern near 1.2930.
Daily chart
Meanwhile, trader orders were bearish. In the 100-pip range, 56% of orders were to sell and 44% were to buy.
On Thursday, the orders were 62% to buy.