The GBP/USD currency pair on Wednesday bounced off the trendline support at about 1.2010 to trade at about 1.2061. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.
The pair has now extended gains to trade several levels above the 100-hour moving average line. As a result, the currency is now trading deep into the overbought conditions 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 the market. On Wedensday, the preliminary UK S&P Global/CIPS Services PMI for November outperformed the expectation of 48 with 48.8. The Manufacturing PMI and Composite PMI also beat 45.8 and 47.5, respectively with 46.2 and 48.3. Earlier in the week, Public Sector Net Borrowing for October outperformed the expectation of GBP15.376 billion with GBP12.728 billion.
In the US, the durable goods orders for October beat the expectation of outshone the forecast of 0.4% with a change of 1%. On the other hand, durable goods orders ex-defence beat the expectation of -0.1% with a change of 0.8% while the durable goods orders ex-transportation outshone the estimated change of 0% with a change of 0.5%. Elsewhere, nondefense capital goods orders ex-aircraft beat the expected change of 0% with a change of 0.7%.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair seems to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.
Therefore, the bulls will be targeting short-term profits at about 1.2118 or higher at 1.2169. On the other hand, the bears will be targeting potential pullback profits at about 1.2012 or lower at 1.1961.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair appears to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be targeting long-term profits at about 1.2249 or higher at 1.2494. On the other hand, the bears will be looking to pounce on profits at about 1.1794 or lower at 1.1536.