On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3485 to trade at about 1.3412. 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. 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 both markets. On Thursday, the preliminary US S&P Global Manufacturing PMI for August came in stronger than expected, with 53.3 versus a forecast of 49.5.
The preliminary S&P Global Services PMI for the period also beat the expectation of 54.2, with a reading of 55.4, while the Philadelphia Fed Manufacturing Survey for the period fell short of 7, with a reading of -0.3. On the other hand, the U.S. initial jobless claims for last week increased to 235k, up from the previous week’s equivalent claim count of 224k, missing the forecast of 225k.
In the U.K., the consumer price index for July exceeded the forecasted (MoM) rate of -0.1% with a rate of 0.1%. The (YoY) equivalent also outshone the estimate of 3.7% with a rate of 3.8%. The core CPI for the period came in stronger than expected with 3.8% (YoY) versus a forecast of 3.7%. The retail price index for July exceeded the (MoM) and (YoY) expectations of 0.1% and 4.5%, respectively, with 0.4% and 4.8%.
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 also supports a bearish bias as it edges closer to oversold conditions.
Therefore, the bears will look to stretch the current downward movement towards 1.3371 or lower to 1.3331. On the other hand, the bulls will look to pounce on rebounds at about 1.3447 or higher at 1.3485.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair trades within a sideways channel formation. However, the 14-day RSI has recently pulled back to avoid rallying towards overbought conditions.
Therefore, the bears will look to extend the current pullback towards 1.3275 or lower to 1.3148. On the other hand, the bulls will look to pounce on profits at about 1.3534 or higher at 1.3661.