The GBP/USD exchange rate showed high volatility on Friday. It began the day with minor appreciation prior to falling 0.56% after a US data release mid-session. This three-hour decline was stopped by the 200-hour SMA near the 1.39 mark. The Pound’s subsequent movement was stranded between this moving average and the 55– and 100-hour SMAs.
The rate might still edge lower down to the bottom boundary of a three-week channel. A subsequent fall is expected to be limited by the 200-hour SMA at 1.39.
Technical indicators are generally bullish for the following trading session, thus favouring a price increase towards the 1.40 area where the senior channel is located.
Meanwhile, G20 meetings are to dominate the political and economic environment during the following two days.
