The GBP/USD exchange rate jumped to 1.2620 level, however, failed to exceed it.
Given that the rate is pressured by the moving averages, it is likely that some downside potential could prevail in the market.
Economic Calendar
Next week is going to be relatively calm, as there are only couple of events that could affect the GBP/USD rate.
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the UK Retail Sales data will be issued at 6:00 GMT. On the same day, Markit is going to publish PMIs survey results for the UK and the US.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to exceed the 1.2620 level. During Friday morning, the rate was trading at 1.2560.It is likely that some downside potential could prevail in the market as the currency pair is pressured by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2580 area.
Note that the pair could gain support from the weekly S1 and the monthly PP in the 1.2500 area. If the given support holds, it is likely that a reversal south could follow.
Hourly Chart
On the daily candle chart, the rate has faced the resistance provided by the Fibo 61.80% at 1.2646 and the 200-day moving average near 1.2700.
In the meantime, the 55- and 100-day moving average could provide support circa 1.2440.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Friday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 60% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 60% of pending orders were set to buy the GBP/USD.