The GBP/USD currency pair on Thursday pulled back off the session highs of about 1.2570 to trade at about 1.2645. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.
Thursday’s late pullback pushed the currency pair a few levels below the 100-hour moving average line. As a result, the currency pair has avoided falling 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 the US market. On Thursday, the US initial jobless claims for the week ending June 21 beat the expected claim count of 236k with a slightly lower tally of 233k.
The pending home sales for May missed the expected (MoM) change of 2.5% with a change of -2.1%. Personal consumption expenditure prices for Q1 beat the forecasted (QoQ) change of 3.3% with a change of 3.4%, while the core personal consumption expenditures for the quarter outshone the estimated change of 3.6% with a change of 3.7%.
Elsewhere, durable goods orders for May exceeded expectations of -0.1% with a change of 0.1%, while the durable goods orders ex-transportation missed 0.2% with a change of -0.1%. The annualised US gross domestic product for Q1 matched the expectation of 1.4%, while the US gross domestic product price index was also in line with the forecast of 3.1%.
Earlier in the week, the US housing price index for April missed the expected (MoM) change of 0.3% with a change of 0.2%.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 1.2632 or lower at 1.2613. On the other hand, the bulls will be targeting potential rebounds at about 1.2658 or higher at 1.2670.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair trades within a descending channel formation. The 14-day RSI also seems to support a long-term bearish bias as it moves toward oversold conditions.
Therefore, the bears will be looking to ride the current declines toward 1.2533 or lower to 1.2421. On the other hand, the bulls will look to pounce on rebounds at about 1.2753 or higher at 1.2860.