The GBP/USD currency pair on Wednesday pulled back off the current 3-week highs of about 1.2337 to trade at about 1.2295. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair remains a few levels above the 100-hour moving average line despite the pullback. Wednesday’s pullback prevented the currency pair from ascending into the overbought 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 the US market. On Wednesday, the US producer price index ex-food and energy for September outperformed the expectation of 2.3% with a change of 2.7% (YoY). The (MoM) equivalent also beat the forecasted change of 0.2% with a change of 0.3%.

The general producer price index for the period exceeded the (MoM) and (YoY) estimates of 0.4% and 1.6%, respectively with changes of 0.5% and 2.2%.  Earlier in the week, the IS NFIB business optimism index for September missed the expected reading of 91.1 with a reading of 90.8.

In the UK, traders will be looking forward to the August GDP on Thursday, alongside the industrial production and manufacturing production data for the month. They will also be waiting for the Bank of England’s Bailey and Cunliffe speeches on Friday.

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

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

Therefore, the bulls will be looking to extend the current run of gains toward 1.2314 or higher to 1.2337. On the other hand, the bears will look to pounce on pullbacks at about 1.2271 or lower at 1.2246.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 1.2411 or higher at 1.2520. On the other hand, the bears will look to pounce on profits at about 1.2175 or lower at 1.2059.