The GBP/USD currency pair on Friday extended declines towards the 100-hour moving average line after pulling back earlier. The currency pair has now fallen to trade at about 1.1170 down from highs of 1.1400.

The currency pair appears to be trading within a descending channel in the 60-min chart. It has since plunged to trade closer to the oversold conditions of the 14-hour RSI.

GBP/USD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair is trading at the back of a relatively busy period in both markets. On Friday, US retail sales control group for September beat the expectation of 0.3% with a change of 0.4%. General retail sales for the period missed the (MoM) forecast of 0.2% with a change of 0%. Earlier in the week, the US consumer price index fell to 8.2% down from 8.3% in the previous month but still came in high than the forecast of 8.1%. The CPI ex-food and energy also beat expectations on both the (YoY) and (MoM) basis.

In the UK, manufacturing production for August missed both the (YoY) and (MoM) estimates of 0.8% and 0%, respectively with a change of -6.7% and -1.6%. On the other hand, industrial production for the period came short of the forecast of -0.2% with a change of -1.8% (MoM), while the (YoY) equivalent fell short of 0.6% with a change of -5.2%.

GBP/USD Technical Analysis (the 60-min Chart)

Technically, the GBP/USD currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be targeting short-term profits at about 1.1089 or lower at 1.1005. On the other hand, the bulls will be looking to pounce on profits at about 1.1254 or higher at 1.1333.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair seems to be trading within a consolidative triangle formation. This indicates a lack of clear directional bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 1.1499 or higher at 1.1888. On the other hand, the bears will be targeting potential downward profits at about 1.0792 or lower at 1.0367.