The lowest level that the GBP/USD reached on Thursday was the 1.2270 level. However, after touching this mark, the rate began a surge, which ended on Friday.
By mid-Friday, the rate was squeezed in between the 55 and 100-hour simple moving averages near 1.2365 and 1.2400.
Economic Calendar
On Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
Next week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
In addition, some market participants are bound to watch the UK GDP and Manufacturing data being released on Wednesday at 08:30 GMT.
GBP/USD short-term review
During Friday morning, the rate was testing the 100-hour SMA near 1.2400. On the one hand, the given moving average could push the currency pair down to the monthly S1. If the given support does not hold, the pair could reach the 1.2250 level.On the other hand, the exchange rate could gain support from the weekly S1 and the 55-hour SMA near 1.2360 and try to exceed the 200-hour SMA and the monthly PP in the 1.2450/1.2470 area.
Hourly Chart
On the daily candle chart, the rate has pierced the lower trend line of a large scale ascending triangle pattern.
In regards to the triangle's shape, a supporting ascending trend line is pushing the rate up. Meanwhile, the rate faces a horizontal resistance, which keeps the GBP/USD below 1.2640.
Daily chart
Read More: Technical Analysis
Long sentiment increases
Since mid-Wednesday, the sentiment on the Swiss Foreign Exchange was 54% long. Namely, 54% of open GBP/USD position volume was in long positions
On Friday, the sentiment was 56% long.
On Friday, the sentiment was 56% long.