On Thursday, GBP/USD gained more than 120 pips, reversing most weekly losses, amid reports euro zone central banks and the ECB will exchange its holdings of Greek government debt for new Greek bonds as part of a second bailout program.

Earlier on Friday, the cross extended gains to a 1-week high of 1.5860 propelled by strong UK retail sales data, although it retreated afterwards, finding support at the 1.5800 area. At time of writing, GBP/USD is trading around 1.5840, heading into the weekly close.

From a technical view, and regarding next week forecast, Ilian Yotov, analyst at AllThingsForex, said, "Following a welcomed price correction, the GBP could resume its efforts to challenge the $1.60 mark and the top of its range established since last October at $1.6165".