On Thursday, the GBP/USD currency pair bounced from the session lows of about 1.3478 to trade at about 1.3507. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair continues ot trade slightly below the 100-hour moving average line, despite the latest rebound. As a result, the currency pair still has room left to run before reaching the overbought 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 increased to 214k, up from 208k in the preceding week, missing the projected claim count of 212k.
On the other hand, the preliminary S&P Global Manufacturing PMI for April rose to 54, up from 52.3 in March, beating the forecasted reading of 52.5. The preliminary S&P Global Services PMI for the period also outshone the forecast of 50, with a reading of 51.3, up from the previous month’s equivalent of 49.8.
In the UK, the preliminary S&P Global Composite PMI for April rose from 50.3 in March to 52, beating the forecasted reading of 49.8. The preliminary S&P Global Manufacturing PMI for the month also rose to 53.6, up from 51, beating the forecasted reading of 49.9.
On the other hand, the preliminary S&P Global Services PMI for the period outshone the forecasted reading of 50, with a reading of 52, up from 50.5. Earlier in the week, the UK retail price index for March outperformed the expected (MoM) and (YoY) forecasts of 0.7% and 3.9%, respectively, with 0.8% and 4.1%.
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 moving closer to oversold conditions.
Therefore, the bulls will look to stretch the latest rebound towards 1.3536 or higher to 1.3566. On the other hand, the bears will look to pounce on profits at about 1.3478 or lower at 1.3447.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair has recently completed an upward breakout from a descending channel formation. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.
Therefore, the bears will look to extend the latest pullback towards 1.3327 or lower to 1.3174. On the other hand, the bulls will look to pounce on profits at about 1.3656 or higher at 1.3804.