Despite technical indicators being bullish on Friday morning, GBP/USD plunged 98 pips within couple of hours mid-session. The most significant downfall resulted from weak UK data released at 0830GMT. This move pushed technical indicators in the strongly bullish and oversold territory. The rate, however, was halted at the 55- day SMA near the 1.2875 mark prior to making a U-turn. The Pound has started to recover some losses and is expected to continue doing so in this trading session, as the pair has formed a minor falling wedge that should lead it to the upper boundary of this pattern circa 1.2930. The Sterling may likewise trade sideways, given the lack of strong market movers scheduled for today. By and large, a possible trading range is likely to be 1.2883/1.2930.
