On Thursday, the GBP/USD currency pair extended Wednesday’s pullback from the highs of about 1.3658 to trade at 1.3590. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair has now fallen to trade a few levels below the 100-hour moving average line. However, the currency pair bounced back later to avoid falling into the oversold 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 US market. On Thursday, the US initial jobless claims for last week fell to 203k, down from the previous week’s equivalent of 207k, beating the forecasted claim count of 208k. On Wednesday, the US personal income for July outperformed the expected (MoM) change of 0.3%, with a change of 0.4%. Personal spending for the period was in line with the estimate of 0.2%.
The personal consumption expenditures price index in July outperformed both the (MoM) and (YoY) forecasts of 0.1% and 3.6%, respectively, with changes of 0.2% and 3.7%. On the other hand, the core personal consumption expenditures price index for the period matched the (MoM) and (YoY) forecasts of 0.2% and 3.3%.
Elsewhere, durable goods orders for July outperformed the expected change of 0.7%, with a change of 1.1%, while durable goods orders ex-transportation missed the expectation of 0.5%, with a change of 0.4%. The preliminary annualized US gross domestic product for Q2 matched the expectation of 1.5%. The preliminary gross domestic product price index for the period outshone the estimate of 6.3%, with a change of 6.4%.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the latest rebound towards 1.3623 or higher to 1.3658. On the other hand, the bears will look to pounce on profits at about 1.3551 or lower at 1.3515.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards 1.3476 or lower to 1.3363. On the other hand, the bulls will look to pounce on profits at about 1.3690 or higher at 1.3804.