On Thursday, the GBP/USD currency pair pulled back off the session high of about 1.3000 to trade at about 1.2871 before bouncing back to 1.2898. The currency pair also completed a downward breakout from an ascending channel formation in the 60-minute chart.

The pair has now recovered to trade a few levels below the 100-hour moving average line. Thursday’s late rebound prevented the currency pair from falling into the oversold levels 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 the U.S. market. On Thursday, the U.S. personal consumption expenditures – price index for September matched the (MoM) expectation of 0.2%. The (YoY) equivalent was also in line with the estimate of 2.1%.

Personal income for the month also matched the (MoM) forecast of 0.3%, while personal spending outshone the expected change of 0.4% with a change of 0.5%. Elsewhere, the initial jobless claims for the week ending October 25 fell to 216k, down from 228k in the preceding week, beating the forecast of 230k.

The core personal consumption expenditures – price index for the month beat the expected (YoY) change of 2.6% with a change of 2.7%, while the (MoM) equivalent was in line with the estimate of 0.3%. Elsewhere, the employment cost index for Q3 missed the expected change of 0.9% with a change of 0.8%. Traders will be looking forward to the U.S. jobs data and the unemployment rate on Friday.

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

Technically, the GBP/USD currency pair has completed a downward breakout from an ascending channel formation in the 60-minute chart. However, the 14-hour RSI bounced back later to avoid falling deep into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 1.2922 or higher to 1.2947. On the other hand, the bears will look to pounce on profits at about 1.2871 or lower at 1.2844.

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 supports a bearish market sentiment as it moves closer to oversold conditions.

Therefore, the bears will be looking to stretch the current decline towards 1.2696 or lower to 1.2508. On the other hand, the bulls will look to pounce on rebounds at about 1.3084 or higher at 1.3260.