On Wednesday, the GBP/USD currency pair pulled back from the session highs of about 1.3241 to trade at about 1.3189 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now plummeted to trade a few levels below the 100-hour moving average line. However, the currency pair made a slight rebound to avoid 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 both markets. On Wednesday, the UK net lending to individuals in September outperformed the (MoM) expectation of GBP 5.5 billion with GBP 7 billion, up from GBP 6 billion in August.
Mortgage approvals for the month also beat the forecast of 64.5k with a tally of 65.944k, up from 64.963k in August. On the other hand, consumer credit for the period fell to GBP 1.491 billion, down from the preceding month’s equivalent of GBP 1.749 billion.
In the U.S., the pending home sales for September missed the expected change of 1.7% with a change of 0% (MoM). The Federal Reserve lowered the base interest rate by 25 basis points to 4%, down from 4.25%, in line with expectations.
On Tuesday, the U.S. housing price index for August outperforemed the expected (MoM) change of 0.1%, with a change of 0.4%. On the other hand, the S&P/Case-Shiller Home Price Indices for the month fell short of the forecasted (YoY) change of 1.9%, with a change of 1.6%.
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. However, the 14-hour RSI bounced back later in the day to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the current rebound towards 1.3241 or higher to 1.3292. On the other hand, the bears will look to pounce on profits at about 1.3129 or lower at 1.3075.
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 edges closer to oversold conditions.
Therefore, the bears will look to ride the current run of declines toward 1.2912 or lower to 1.2661. On the other hand, the bulls will look to pounce on rebounds at about 1.3478 or higher at 1.3723.