On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3267 to trade at about 1.3193. 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. As a result, the currency pair is on the verge of entering 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 both markets. On Thursday, the US initial jobless claims for last week edged slightly lower to 197k, down from the preceding week’s equivalent of 198k, beating the forecast claim count of 200k.

On Thursday, the Chicago Purchasing Managers’ Index for September outperformed the expectation of 51.2, with a reading of 58.8, up from the previous week’s equivalent of 47.1. On the other hand, personal income for August missed the expected (MoM) change of 0.4%, with a change of 0.2%. Pending sales for the period outshone the forecast change of 0.8%, with a change of 0.9%.

Elsewhere, the US ADP employment change for September outperformed expectations of 70k, with a tally of 90k, up from the previous month’s equivalent of 36k. On the other hand, the annualized US gross domestic product for Q2 outshone the expected change of 1.5%, with a change of 2.2%.

In the UK, the gross domestic product for Q2 beat the forecast (QoQ) change of 0.4%, with a change of 0.5%. The (YoY) equivalent also outshone the estimate of 1.2%, with a change of 1.4%.

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

Technically, the GBP/USD currency pair trades within a descending channel formation on the 60-minute chart. The 14-hour RSI also supports a bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to stretch the current declines toward 1.3150 or lower, to 1.3111. On the other hand, the bulls will look to pounce on rebounds at about 1.3227 or higher, at 1.3267.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair also trades within a descending channel formation. However, the 14-day RSI has recently bounced back to recover from oversold conditions.

Therefore, the bulls will look to pounce on rebounds at about 1.3279 or higher, up to 1.3380. On the other hand, the bears will look to pounce on extended pullbacks at about 1.3095 or lower, down to 1.2989.