The GBP/USD has broken the resistance of the descending channel pattern, which guided it lower for the most part of May.
Although, before surging and breaking the resistance of the pattern the rate reached a new low level by shortly reaching below the 1.2590 level.
Bureau of Economic Analysis released the US Prelim GDP data, which came out in line with expectations of 3.1%.
According to the official release: "Today's estimate reflects downward revisions to nonresidential fixed investment and private inventory investment and upward revisions to exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, were revised up; the general picture of economic growth remains the same."
Canadian GDP ends the week
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.GBP/USD short-term review
On Friday morning, after piercing the resistance of the May channel down pattern the rate's surge was stopped by the 55-hour simple moving average.If the rate breaks the resistance of the 55-hour simple moving average, it should surge next to the 100-hour SMA, which during the morning hours was located at 1.2650.
On the other hand, the pair might trade sideways between the 55-hour SMA and the support of the pivot point at 1.2609.
Hourly Chart
On the daily candle chart, the rate has confirmed the previous support level as resistance, by reaching the 1.2750 level and bouncing off it.
Meanwhile, the rate remains far below the daily simple moving averages, which is a clear signal that the GBP is oversold.
Daily chart
On Friday, the sentiment became 75% long.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 53% of orders were set to sell.