On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3584 to trade at about 1.3539. The currency pair trades within a sideways channel formation in the 60-minute chart.
However, 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 some 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 both markets. In the UK, the gross domestic product for February outperformed the expected (MoM) change of 0.1%, with a change of 0.5%. The industrial production for the month also beat the forecast of 0.2%, with a change of 0.5% (MoM).
On the other hand, manufacturing production for the period fell short of the forecasted (MoM) change of 0.3%, with a change of -0.1%. The BRC Like-for-Like retail sales for March exceeded the (YoY) forecast of 0.9%, with a change of 3.1%.
In the US, the NY Empire State Manufacturing Index for April improved to 11, up from -0.2 in March, beating the forecasted reading of -0.5. Earlier in the week, the US producer price index for March missed the expected (MoM) change of 1.2%, with a change of 0.5%. The (YoY) equivalent also fell short of 4.6%, with a change of 4%.
The producer price index ex-food and energy for the month also fell short of the forecasted (MoM) and (YoY) changes of 0.6% and 4.2%, respectively, with 0.1% and 3.8%.
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 move closer to oversold conditions.
Therefore, the bears will look to stretch the latest pullback towards 1.3479 or lower to 1.3426. On the other hand, the bulls will look to pounce on rebounds at about 1.3584 or higher at 1.3637.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.
Therefore, the bulls will look to extend the latest rebound towards 1.3709 or higher to 1.3868. On the other hand, the bears will look to pounce on pullbacks at about 1.3358 or lower at 1.3191.