GBP/USD’s movement was driven by fundamental events on Thursday. The Sterling was trading at its weekly high of 1.36 early in the day with further advance being halted by the weekly PP and 200-hour SMA.
The pair fell aggressively in the wake of the BOE release, as rather disappointing economic data restricted the bank from hiking interest rates. Meanwhile, the pair’s subsequent move in the opposite direction was caused by missed US CPI estimates.
By Friday morning, the Sterling had returned to the 55– and 100-hour SMAs at 1.3550. It is likely that this resistance level, likewise reinforced by the nearby-located 200-hour moving average, proves to be an unbreakable barrier today. Thus, a bearish move down to the weekly S1 at 1.3417 is a more probable scenario.
