On Wednesday, the GBP/USD currency pair pulled back from the session highs of about 1.2635 to trade at about 1.2589. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now descended to trade slightly below the 100-hour moving average line. However, the pair made a late rebound to avoid falling into the oversold conditions of the 14-hour RSI.

GBP/USD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair trades during a relatively busy period in both markets. On Wednesday, the UK consumer price index for January outperformed the expected (MoM) change of -0.3% with a change of -0.1%. The (YoY) equivalent also exceeded expectations of 2.8% with 3%, while the core CPI was in line with the estimate of 3.7%.

The non-seasonally adjusted producer price index – output for January outperformed the expected (MoM) change of 0.2% with a change of 0.5%. The (YoY) equivalent also beat the estimate of 0.1% with a change of 0.3%. Elsewhere, the UK retail price index for January missed the expected change of 3.7% with a change of 3.6% (YoY), while the (MoM) equivalent was in line with the estimate of -0.1%.

In the US, the building permits for January outperformed the expected tally of 1.46 million with 1.483 million, up from 1.482 million in December. The housing starts for the period fell short of 1.4 million with 1.366 million, down from 1.515 million. Earlier in the week, the NY State Empire Manufacturing Index for February exceeded the expectation of -1 with 5.7.

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 avoid falling into oversold conditions.

Therefore, the bulls will look to pounce on extended rebounds at about 1.2635 or higher at 1.2686. On the other hand, the bears will look to pounce on profits at about 1.2540 or lower at 1.2487.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it moves closer to the overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 1.2813 or higher to 1.3034. On the other hand, the bears will look to pounce on pullbacks at about 1.2358 or lower at 1.2127.