On Wednesday, the GBP/USD currency pair pulled back from the session highs of about 1.3530 to trade at about 1.3462. The currency pair trades within a sideways 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 bounced back later to avoid falling 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 the U.S. market. On Tuesday, the Redbook Index stood at 7.6% compared to 7.2% in the previous period. On the other hand, the Housing Price Index for October improved, with a change of 0.4% (MoM) versus -0.1% in September, beating the forecasted change of 0.1%. 

The S&P/Case-Shiller Home Price Indices for the month also came in better than expected, with 1.3% (YoY) versus a forecast of 1.1%, down from 1.4% in the preceding period. Eslewhere, the Chicago Purchasing Managers’ Index for December improved to 43.5, up from 36.3, beating the forecasted reading of 39.5.

Earlier in the week, the U.S. pending home sales for November outperformed the (MoM) expectation of 1%, with a change of 3.3%, compared to a change of 2.4% in the preceding period. The (YoY) equivalent also improved, with a change of 2.6% versus -0.4% in the previous period. Traders will be looking forward to the U.S. initial jobless claims data later on Wednesday.

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 bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the latest rebound towards 1.3530 or higher to 1.3599. On the other hand, the bears will look to pounce on profits at about 1.3392 or lower at 1.3319.

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 advancing into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.3227 or lower to 1.3018. On the other hand, the bulls will look to ride the current run of gains toward 1.3666 ot higher to 1.3864.