On Thursday, the GBP/USD currency pair bounced from the session lows of about 1.3477 to trade at about 1.3514. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair continues to trade slightly below the 100-hour moving average line, despite the latest rebound. As a result, the currency pair still has some 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 the US market. On Thursday, the US ISM Services PMI for August rose to 54.4, up from 54.1 in July, beating the forecasted reading of 54.3. On the other hand, US unit labour costs for Q2 missed the forecast change of 1.3%, with a change of 1.2%, while nonfarm productivity for the quarter matched the forecast of 1.4%.
The US initial jobless claims for last week also rose slightly to 206k, up from the previous week’s equivalent of 204k, missing the forecast claim count of 205k. Elsewhere, the S&P Global Composite PMI for August was unchanged at 56, in line with expectations.
Earlier in the week, the US ADP employment change for August fell to 38k, down from the previous month’s equivalent of 46k, missing the forecast change of 47k. On the other hand, factory orders for July outperformed the (MoM) expectation of 0.6%, with a change of 0.9%.
Elsewhere, the ISM Manufacturing PMI for August missed the expectation of 55.2, with a reading of 54.6, down from 55.6 in July. The ISM Manufacturing Prices Paid for the period also fell short of 72, with a reading of 71.1, unchanged from the previous month.
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. However, the 14-hour RSI has recently bounced back to move closer to overbought conditions.
Therefore, the bulls will look to stretch the latest rebound towards 1.3545 or higher, up to 1.3585. On the other hand, the bears will look to pounce on pullbacks at about 1.3477, or lower at 1.3437.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards 1.3385 or lower, to 1.3275. On the other hand, the bulls will look to pounce on profits at about 1.3606, or higher at 1.3717.