On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3391 to trade at about 1.3363. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade slightly below the 100-hour moving average line. However, the currency pair still has some 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. In the UK, the BRC Like-for-Like retail sales for May outperformed the expected (YoY) change of 0.6%, with a change of 3.4%. Looking forward, traders will be waiting for the UK’s gross domestic product data for April, the manufacturing production and industrial production data for the month, and the consumer inflation expectations rate on Friday.

In the US, the consumer price index for May matched the expectation of 0.5% (MoM). The (YoY) equivalent was also in line with the forecast of 4.2%. On the other hand, the consumer price index ex-food and energy fell short of the forecasted (MoM) change of 0.3%, with a change of 0.2%, while the (YoY) equivalent matched the estimate if 2.9%. The US monthly budget statement for May fell short of the forecasted figure of $-275 billion, with $-293 billion, down from the previous month’s equivalent of $215 billion.

Looking forward, traders will be waiting for the US producer price index data for May and the initial jobless claims data for last week later on Thursday, ahead of June’s preliminary Michigan Consumer Expectations and Sentiment Index on Friday.

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 some room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the current run of declines toward 1.3331 or lower to 1.3301. On the other hand, the bulls will look to pounce on rebounds at about 1.3391 or higher at 1.3421.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair also trades within a descending channel formation. The 14day RSI also has some room left to run before reaching oversold conditions. 

Therefore, the bears will look to extend the current decline towards 1.3197 or lower to 1.3015. On the other hand, the bulls will look to pounce on rebounds at about 1.3545 or higher at 1.3716.