On Friday, the GBP/USD currency pair pulled back from the session highs of about 1.3584 to trade at about 1.3509 after the latest data. The currency pair trades within a slightly ascending channel formation in the 60-minute chart.

Friday’s pullback pushed the currency pair next to the 100-hour moving average line. However, the pair made a slight rebound 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 Friday, the U.S. jobs data fell to 139k, down from 177k in April, beating the forecast of 130k. The average hourly wage growth for the month also outshone the forecasted (MoM) and (YoY) changes of 0.3% and 3.7%, respectively with changes of 0.4% and 4.9%.

On the other hand, the unemployment rate for the period was unchanged at 4.2% in line with expectations, while the participation rate fell to 62.4% down from 62.6% in April.

Earlier in the week, the U.S. initial jobless claims for the week ending May 30 increased to 247k, up from 239k in the preceding week, missing the forecasted claim count of 235k. Nonfarm productivity for Q1 also fell short of -0.7% with a change of -1.5%, while unit labour costs for the quarter beat the expected change of 5.7% with a change of 6.6%.

The ISM Sevices PMI for May missed the expectation of 52 with a reading of 49.9, while the ISM Services Employment Index fell short of 52.3 with a reading of 50.7.

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

Technically, the GBP/USD currency pair trades within an ascending channel formation in the 60-minute chart. The 14-hour RSI has also bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 1.3584 or higher to 1.3619. On the other, the bears will look to pounce on profits at about 1.3509 or lower at 1.3471.

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 ride the current run of gains toward 1.3699 or higher to 1.3851. On the other hand, the bears will look to pounce on pullbacks at about 1.3409 or lower at 1.3256.