The GBP/USD currency pair on Friday bounced off the key support at about 1.3190 to surge above 1.3200 after a recent channel breakout. The currency pair remains pinned below the ascending channel formation in the 60-min chart.
The pair also continues to trade below the 100-hour moving average. The recent rebound prevented the currency pair from falling into the oversold conditions in 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 consumer price index ex-food and energy matched the (MoM) and (YoY) expectations of 0.5% and 4.9%, respectively.
Earlier in the week, the initial jobless claims for the week ending Dec. 3 beat the expected claim count of 218k with a lower tally of 184k. On the other hand, continuing claims for the preceding week missed the expectation of 1.9 million with 1.992 million. Traders will be looking forward to the preliminary Michigan Consumer Sentiment Index for December.
In the UK, the gross domestic products for October missed the expected change of 0.4% with a change of 0.1% (MoM). The industrial production for October also failed to match the expected (MoM) and (Yoy) changes of 0.1% and 2.2%, respectively with -0.6% and 1.4%. Manufacturing production for the period also missed the expectation of 1.7% with 1.3% on a (YoY) basis.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair seems to have recently bounced off a key support level at 1.3190. However, the pair is yet to return to the ascending channel formation in the 60-min chart.
Therefore, the bulls will be targeting extended rebound profits at about 1.3227, or higher at 1.3251. On the other hand, the bears will look to pounce for pullbacks at about 1.3184, or lower at 1.3160.
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 ride the current bearish trend towards 1.3129 or lower to 1.3043. On the other hand, the bulls will be targeting long-term profits at about 1.3286, or higher at 1.3368.