On Wednesday, the GBP/USD currency pair pulled back from the session highs of about 1.3503 to trade at about 1.3471. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line, despite the pullback. As a result, the currency pair still has 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 the US market. On Wednesday, the US ADP employment change for October remained steady at 86k versus a forecast of 69k.

The US ISM Services PMI for October fell to 54.5, down from 54.9, missing the forecast reading of 54.8. The ISM Services Prices Paid for the month also edged lower to 73, down from 74. On the other hand, the S&P Global Composite PMI for October missed the expectation of 57.6, with a reading of 55.9, down from the previous month’s equivalent of 57.6.

On Tuesday, factory orders for September came in better than expected, with a (MoM) change of 1.8% versus a forecast of 1.2%. JOLTS job openings for September also came in higher than expected, at 7.523 million versus a forecast of 7.13 million, up from the previous month’s equivalent of 7.19 million.

Earlier in the week, the US ISM Manufacturing PMI for October outperformed the expectation of 54.6, with a reading of 55.5, up from the preceding month’s equivalent of 54.5. On the other hand, the ISM Manufacturing Prices Paid for the period fell short of 77, with a reading of 75.2, down from 77.9 in September.

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

Technically, the GBP/USD currency pair trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions. 

Therefore, the bears will look to extend the current pullback towards 1.3438 or lower, down to 1.3404. On the other hand, the bulls will look to pounce on extended gains at about 1.3503 or higher, up to 1.3535.

GBP/USD Technical Analysis (the Daily Chart)

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

Therefore, the bulls will look to extend the current gains toward 1.3571 or higher, up to 1.3670. On the other hand, the bears will look to pounce on pullbacks at about 1.3373 or lower, down to 1.3266.