On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3336 to trade at about 1.3270. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. However, the currency pair still has room left to run before reaching 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 Thursday, the Bank of England voted seven out of nine to lower the base interest rate by 25 basis points to 4.25%, down from 4.5% in line with expectations. The rate cut comes just a day after the U.S. Federal Reserve chose to keep the Funds Rate unchanged at 4.5% in line with forecasts. 

Earlier in the week, the U.S. ISM Services PMI for April outperformed the expectation of 50.6 with a reading of 51.6, a slight improvement from 50.8 in March. The ISM Services Prices Paid for the period also improved to 65.1 from 60.9, while the ISM Services New Orders Index and Employment Index were up significantly to 52.3 and 49 respectively, from 50.4 and 46.2. On the other hand, the S&P Global Composite PMI for April missed the expectation of 51.2 with a reading of 50.6, down from 51.2 in March.

Elsewhere, the initial jobless claims for the week ending April 2 on Thursday came in slightly lower than expected with 228k versus a forecast of 230k, down from the preceding week’s equivalent of 241k. 

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 still has room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the current declines toward 1.3196 or lower to 1.3123. On the other hand, the bulls will look to pounce on rebounds at about 1.3336 or higher at 1.3403.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 1.3087 or lower at 1.2891. On the other hand, the bulls will look to pounce on profits at about 1.3449 or higher at 1.3633.