The GBP/USD currency pair on Friday extended declines before finding a trendline support at about 1.2053. Ths currency pair continues to trade within a descending channel formation in the 60-min chart.

The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair is now trading deep into the oversold levels 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 both markets. On Friday, the UK S&P Global/CIPS composite PMI for January outperformed the expectation of 47.8 with a reading of 48.5.  On the other hand, the Services PMI outshone the estimate of 48 with 48.7. Earlier in the week, the bank of England raised the base interest rate by 50 basis points in line with expectations to 4%. The decision was passed by a majority of 7 out of 9, with 2 members voting for the rate to remain unchanged.

In the US, the jobs data for January beat the expected tally of 185k with a higher tally of 517k. The unemployment rate for the month also outshone the forecasted rate of 3.6% with a lower rate of 3.4%, down from 3.5% in the previous month. However, the average hourly wage growth failed to impress with a change of 4.4% compared to an expected growth rate of 4.9%. The initial jobless claims also impressed on Thursday with 183k compared to an estimate of 200k.

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

Technically, the GBP/USD currency pair appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current streak of declines toward 1.1983 or lower to 1.1915. On the other hand, the bulls will look to pounce on rebounds at about 1.2133 or higher at 1.2195.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair seems to have recently completed a downward breakout from an ascending channel formation. This indicates a significant change in the market sentiment from bullish to bearish.

Therefore, the bears will be targeting long-term profits at about 1.1860 or lower at 1.1699. On the other hand, the bulls will look to pounce on profits at about 1.2257 or higher at 1.2428.