The GBP/USD currency pair bounced off the current weekly lows on Wednesday amid growing uncertainty on the Brexit process and stalling trade talks. The currency pair recently pulled back after setting a new 6-month high of about 1.3010 t bottom at around 1.2842.

On Wednesday, the pair appears to turn the tide upwards again surging to trade at around 1.2884 after Parliament slowed down the Brexit process. The pair’s latest pullback comes off an extended rally that dates back to the middle of this month.

GBP/USD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair is trading at the back of a key development on the Brexit process while the US-China trade talks continue. The latest round of economic data also appears to favor the Pound Sterling ahead of the greenback.

On Tuesday, the US Existing Home Sales missed expectations of 5.45M with 5.38M for August while the Existing Home Sales change came short of the expected change of -0.7% with -2.2%. The 3-month and 6-month auction rates edged lower from 1.64% and 1.62% respectively to 1.63% and 1.60%.

On the other hand, the UK Public Sector Net Borrowing beat expectations of GBP 8.800 Billion with GBP 8.734 billion while the CBI Industrial Trends Survey-Orders (MoM) for October came in at -37 compared to an expectation of -28.

GBP/USD Technical Analysis (the 60-min Chart)

Technically, the GBP/USD currency pair appears to have recently broken out of an ascending channel to bottom at around 1.2842 after setting a new 6-month high at 1.3010. The currency pair is now pegged between the 100-hour SMA and the 200-hour SMA.

Therefore, the bulls will be target short-term profits at around 1.2920, 1.2960 or higher at 1.3000. On the other hand, the bears will be targeting the next pullback at around 1.2842, 1.2800, or lower at 1.2750.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to have recently broken out of a descending wedge, which indicates a long-term trend reversal. This could trigger a major bull-run in the currency pair amid the Brexit process.

Therefore, the bulls will be targeting long-term profits at around 1.3000, 1.3120, or higher at 1.3190. On the other hand, the bears will hope for an immediate pullback by targeting long-term profits at around 1.2680, 1.2595 or lower at 1.2500.

In summary, the GBP/USD currency pair appears to be experiencing significant bullish pressure after the recent trend reversal, however, it remains to be seen whether this momentum will be sustainable in the long-term future.