'The reversal appears to be purely a function of a recovering US Dollar which has been under pressure all week as the US Trump administration bats allegation after allegation of wrongdoings and incompetence.' – Joaquin Monfort (based on PoundSterlingLive)
The morning session started rather calmly for GBP/USD with no strong market movers pushing the pair to either side. The Pound closed Thursday's session in the red area, thus leaving upside potential for the pair to reach the upper channel boundary today. Up to now, the rate has been appreciating gradually, suggesting that bulls may prevail to lead the currency towards the weekly R1 or even the channel boundary at 1.2970 and 1.3000, respectively. GBP/USD changing to the downside is not very likely today, taking into account bullish indicators that favour the above scenario over the Pound pushing back down to the 20-day SMA.
Traders have turned bearish on the pair, as 52% of open positions are short. However, 55% of pending orders are to buy the Pound.