On Wednesday, the GBP/USD currency pair extended the sideways movement around 1.3269 after bouncing off session lows of 1.3245. The currency pair trades within a horizontal channel formation in the 60-minute chart.
The pair continues to trade a few levels below the 100-hour moving average line. As a result, the currency pair has room on either side of the 14-hour RSI for the bulls and the bears to pounce.
GBP/USD Fundamentals Overview
From a fundamental perspective, the GBP/USD currency pair trades during a relatively busy period in the US market. On Wednesday, the ADP employment change for September outperformed the expected change of 120k with a tally of 143k, up from the preceding month’s equivalent of 103k.
On Tuesday, the US ISM Manufacturing PMI for September missed the expectation of 47.5 with a reading of 47.2. The ISM Manufacturing Prices Paid also fell short of 53.3 with 48.3, while the ISM Manufacturing Employment Index failed to match the forecast of 47 with 43.9.
On the other hand, the JOLTS job openings for August outshone the forecasted tally of 7.655 million with a tally of 8.04 million. Earlier in the week, the September Chicago Purchasing Managers’ Index beat the expectation of 46.2 with a reading of 46.6.
In the UK, the gross domestic product for Q2 missed the forecasted (QoQ) change of 0.6% with a change of 0.5%. The (YoY) equivalent also fell short of 0.9% with a change of 0.7%.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to recover from oversold conditions.
Therefore, the bulls will look to stretch the current rebound towards 1.3327 or higher to 1.3382. On the other hand, the bears will look to pounce on profits at about 1.3208 or lower at 1.3148.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD 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 be looking to stretch the current pullback towards 1.3108 or lower to 1.2945. On the other hand, the bulls will look to pounce on potential rebounds at about 1.3428 or higher at 1.3590.