The GBP/USD currency pair on Friday bounced off a new 2-week low of about 1.3144 to trade at around 1.3220 after the mid-week pullback. The currency pair appears to be trading within an ascending channel in the 60-min chart.

The pair remains several levels below the 100-hour and the 200-hour SMA lines. Friday’s late rebound pushed it off oversold levels of the 14-hour RSI, back to the normal trading zone.

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 Thursday, the UK Manufacturing Production for October beat the (MoM) expectation of 0.3% with a change of 1.7%. The (Yoy) equivalent beat the expected change of -8.4% with a change of -7.1%. Industrial production for the same period also outperformed the expected (MoM) change of 0.3% with 1.3%. The (YoY) equivalent outperformed -6.5% with a change of -5.5%. The UK gross domestic product for October matched the expectation of 0.4% (MoM).

In the US, the preliminary Michigan Consumer Sentiment Index for December outperformed the expectation of 76.5 with 81.4 on Friday.  The US producer price index ex-food and energy missed the expectation of 1.5% with a change of 1.4%. The (MoM) equivalent missed the expected change of 0.2% with a change of 0.1%. On Thursday, the US CPI ex-food and energy for November beat the expected (MoM) change of 0.1% with a change of 0.2%. The (YoY) equivalent matched expectations of 1.6%.

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

Technically, the GBP/USD currency pair appears to be trading within a gently ascending channel in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

The bulls will be targeting short-term profits at around 1.3300 or higher at 1.3380. On the other hand, the bears will look to pounce for short-term pullback profits at around 1.3144 or lower at 1.3071.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to have recently completed a XABCD double-bottom reversal pattern. This indicates an attempt by the bulls to take control of the pair long-term.

They will be looking to extend the current bull-run towards 1.3447 or higher to 1.3660. On the other hand, the bears will look to pounce for long-term pullbacks at around 1.2994 or lower at 1.2806.