On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3460 to trade at about 1.3431. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. Thursday’s pullback prevented the currency pair from entering the overbought 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. On Friday, the US initial jobless claims for last week came in worse than expected, with 225k versus a forecast of 213k, up from the previous week’s claim count of 212k. Nonfarm productivity for Q1 also missed the expected change of 0.8%, with a change of 0.3%, while unit labor costs for the quarter fell short of the forecasted change of 2.3%, with a change of 1.8%. 

On Wednesday, the ISM Services PMI for May beat the expectation of 53.8, with a reading of 54.5. The factory orders for April also came in better than expected, with a (MoM) change of 4.8% versus a forecast of 4.6%. The S&P Global Composite PMI for May missed the expectation of 51.7, with a reading of 51.5. Elsewhere, the ADP employment change for May outshone the forecasted change of 117k, with a tally of 122k, up from 105k in April. 

Earlier in the week, JOLTS job openings for April increased to 7.618 million, up from the previous month’s equivalent of 6.887 million, beating the forecasted tally of 6.88 million. The ISM Manufacturing PMI for May beat the expectation of 53, with a reading of 53, up from 52.7. 

GBP/USD Technical Analysis (the 60-min Chart)

Technically, the GBP/USD currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3402 or lower to 1.3371. On the other hand, the bulls will look to pounce on profits at about 1.3460 or higher at 1.3490.

GBP/USD Technical Analysis (the Daily Chart)

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

Therefore, the bears will look to extend the latest declines towards 1.3347 or lower to 1.3255. On the other hand, the bulls will look to pounce on profits at about 1.3512 or higher at 1.3600.