The GBP/USD currency pair on Friday bounced off the two-week lows to trade above the 1.2100 level after the latest round of the US ISM PMI data. The currency pair now seems to be trading within a sharply ascending channel formation in the 60-min chart.
However, the pair is still far from retesting the 100-hour moving average line, thus leaving more room for upward movement. In addition, the currency pair is yet to reach overbought conditions after recently recovering from the oversold levels 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, the US ISM Manufacturing PMI for June missed the expectation of 54.9 with 53. Its associated PMIs also came short of estimates. On the other hand, the S&P Global Manufacturing PMI outperformed the expectation of 52.4 with 52.7. Earlier in the week, the initial jobless claims for the week ending June 24 missed the expected claim count of 228k with a higher tally of 231k.
In the UK, mortgage approvals for May outperformed the expected tally of 64k with 66.16k, while the M4 money supply increased by 0.5% (MoM) and 5.1% (YoY) compared to the previous period’s increment of 0% and 4.9%, respectively. Earlier in the week, the UK Gross Domestic Products for Q1 matched the expected (QoQ) expectation of 0.8% with 0.8%. The (YoY) change was also in line with 8.7%.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair seems to be trading with a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.
Therefore, the bears will be targeting potential pullback profits at about 1.2061, or lower at 1.2006. On the other hand, the bulls will be targeting short-term profits at about 1.2136, or higher at 1.2184.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward 1.1938 or lower to 1.1772. On the other hand, the bulls will be looking to pounce for rebounds at about 1.2272, or higher at 1.2478.