On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3514 to trade at about 1.3441. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair has since slipped 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 Thursday, the US initial jobless claims for last week fell to 206k, down from 229k, beating the forecasted claim count of 225k. The Philadelphia Fed Manufacturing Survey for February also came in better than expected, with 16.5 versus a forecast of 8.5, up from the previous month’s equivalent of 12.6.
On Wednesday, the US durable goods orders for January exceeded the expectation of -2%, with a change of -1.4%. The durable goods orders ex-transportation also beat the forecast of 0.3%, with a change of 0.9%, while the nondefense capital goods orders ex-aircraft outshone the estimate of 0.5%, wth a change of 0.6%.
In the UK, the consumer price index for January matched the (MoM) and (YoY) forecasts of -0.5% and 3%, respectively. The core consumer price index for the period was also in line with the estimate of 3.1%. On the other hand, the retail price index for the month missed the expected (MoM) change of -0.4%, with a change of -0.5%. The (YoY) equivalent also fell short of 3.9%, with a change of 3.8%.
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 sentiment after falling into oversold conditions.
Therefore, the bears will look to stretch the current declines toward 1.3365 or lower to 1.3293. On the other hand, the bulls will look to pounce on rebounds at about 1.3514 or higher at 1.3582.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair has recently completed a downward breakout from an ascending channel formation. The 14-day RSI also pulled back to recover from overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards 1.3174 or lower to 1.2952. On the other hand, the bulls will look to pounce on profits at about 1.3683 or higher at 1.3869.