On Friday, the GBP/USD currency pair pulled back from the session highs to trade at about 1.3212 to trade at about 1.3161. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair continues to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 Friday, the U.S. jobs data for July missed the expectation of 110k with a tally of 73k, up from the previous month’s equivalent of 14k. The unemployment rate for the month edged slightly higher to 4.2%, up from 4.1%, in line with expectations.

On the other hand, the average hourly wage growth for July matched the forecasted (MoM) change of 0.3%, up from 0.2% in June. The (YoY) equivalent edged slightly higher to 3.9%, up from 3.8%, beating the forecast of 3.8%.

Earlier in the week, the Chicago Purchasing Managers’ Index for July exceeded the expectation of 42 with a reading of 47.1, up from the previous month’s equivalent of 40.4. Personal income for the month came in better than expected, with 0.3% versus a forecast of 0.2%, while personal spending missed 0.4% with a change of 0.3%.

The initial jobless claims for the week ending July 25 increased slightly to 218k, up from 217k, beating the forecasted claim count of 224k.

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

Technically, the GBP/USD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also plummeted to move closer to oversold conditions. 

Therefore, the bears will look to stretch the current pullback towards 1.3106 or lower to 1.3047. On the other hand, the bulls will look to pounce on rebounds at about 1.3212 or higher at 1.3276.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair has recently completed a head-and-shoulders reversal pattern formation. The 14-day RSI also supports a bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to extend the current downward movement towards 1.2942 or lower to 1.2713. On the other hand, the bulls will look to pounce on rebounds at about 1.3380 or higher at 1.3619.