On Friday morning, the GBP/USD traded at the 1.2540 level. The rate had made failed attempts to pass the resistance of the 1.2560 level.
In general, the rate was expected to resume its surge after it consolidates after the sharp surge that was caused by the Federal Reserve hinting rate hikes on Thursday.Latest Fundamental Event Report
The British Pound appreciated against the US Dollar, following the UK Retail Sales data release on Thursday at 08:30 GMT. The GBP/USD exchange currency rate gained 12 pips or 0.10% right after the release. The British Pound continued trading at the 1.2480 level against the Greenback.
The Office for National Statistics released the UK Retail Sales data, which came out better-than-expected of 1.0% compared with the forecast of negative 0.3%.
According to the official release: "In the three months to June 2019, the quantity bought increased by 0.7%, with growth across all sectors except food stores and department stores; however, this was a slowdown from the stronger growth of 1.6% in the three months to May 2019. Online sales as a proportion of all retailing fell to 18.9% in June 2019, from the 19.3% reported in May 2019."
No more data this week
Data releases for this week are over.
Watch the Economic Calendar Overview on Friday at 12:00 GMT to review next week's events.
GBP/USD short-term review
The surge of the GBP/USD on Friday had reached the range between 1.2440 and 1.2460. It was trading there in limbo around two pivot points, squeezed in between round levels.The rate was expected to surge, as the market will continue to spread the information that the Fed has once more revealed information about an upcoming rate cut that would weaken the USD.
In the case of a surge, the GBP/USD should surge through the 1.2560 level and aim to reach the 1.2600 level. Meanwhile, note that next week new weekly pivot points will be calculated. One of them might stand between the rate and the 1.2600 level.
On the other hand, the pair might decline, if Brexit worries increase. In that scenario the pair would decline down to the support levels that are located below the 1.2500 level.
Hourly Chart
On the daily candle chart, the dominant descending channel pattern's lower trend line caused the recent surge by providing support. The trend line was also strengthened by the weekly and monthly second support levels.
Meanwhile, note that the daily simple moving averages are far above the currency pair, indicating that the pair is oversold.
Daily chart
On Thursday, 70% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
The short sentiment increased on Friday, as during the early London trading hours 74% of volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were once more bullish, as 60% of orders were set to buy. The orders had dropped to 52% to buy on Thursday.