On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3320 to trade at about 1.3182. The currency pair trades within a descending channel formation in the 60-minute chart.

Thursday’s pullback pushed the pair 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 US market. In the UK, the gross domestic product for Q4 matched the (QoQ) forecast of 0.1%. The (YoY) equivalent was also in line with the estimate of 1%. 

In the US, the ADP employment change for March fell to 62k, down from 66k in February, beating the forecasted change of 40k. Retail sales for February also exceeded the (MoM) forecast of 0.5%, with a change of 0.6%, while the retail sales ex-autos beat 0.3%, with a change of 0.5% (MoM). 

The ISM Manufacturing PMI for March also came in stronger than expected, with 52.7 versus a forecast of 52.5, up from 52.4 in February. The ISM Manufacturing Prices Paid also outshone the estimate of 73, with a reading of 78.3, up from 70.5.

Earlier in the week, the Chicago Purchasing Managers’ Index for March missed the expected reading of 55, with a reading of 52.8, down from 57.7 in February. JOLTS Job Openings for February also fell short of the forecasted tally of 6.92 million, with a tally of 6.882 million, down from the preceding month’s equivalent of 7.24 million.

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 pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3110 or lower to 1.3034. On the other hand, the bulls will look to pounce on rebounds at about 1.3248 or higher at 1.3320.

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 long-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to ride the current run of declines toward 1.3007 or lower to 1.2830. On the other hand, the bulls will look to pounce on rebounds at about 1.3353 or higher at 1.3536.