On Thursday, the GBP/USD currency pair extended Wednesday’s to trade at about 1.3350 after the latest U.S. economic data. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has now advanced to trade several levels above the 100-hour moving average line. As a result, the currency pair entered the overbought levels of the 14-hour RSI.

GBP/USD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair trades during a relatively busy period in the U.S. market. On Wednesday, the US ADP employment change for November missed the expectation of 5K, with a change of -32k, down from the previous month’s equivalent of 47k. 

On the other hand, the industrial production for September outperformed the expected (MoM) change of 0%, with a change of 0.1%. The ISM Services PMI for November also exceeded the expected reading of 52.1, with a reading of 52.6, while the S&P Global Composite PMI for the month missed 54.8, with a reading of 54.2.

Earlier in the week, the ISM Manufacturing PMI for November missed the expectation of 48.6, with a reading of 48.2, while the ISM Manufacturing Prices Paid for the period fell short of 59.5, with a reading of 58.5. 

Traders will be looking forward to the jobless claims data later on Thursday, ahead of Friday’s personal consumption expenditures data for September and the preliminary consumer inflation expectations for December on Friday.

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

Technically, the GBP/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying deeper into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 1.3285 or lower to 1.3220. On the other hand, the bulls will look to pounce on profits at about 1.3410 or higher at 1.3473.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair has completed an upward breakout from a descending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to extend the current rebound towards 1.3498 or higher to 1.3665. On the other hand, the bears will look to pounce on pullbacks at about 1.3193 or lower at 1.3024.