On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3618 to trade at 1.3529 before bouncing back to 1.3569. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair continues to trade slightly below the 100-hour moving average line, despite a late recovery. Thursday’s late rebound prevented the currency pair from entering the oversold level 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 U.S. initial jobless claims for the week ending July 4 came in lower than expected, with 227k versus a forecast of 235k, down from the previous week’s claim count of 233k. The continuing claims for the preceding week also beat the forecast of 1.98 million with 1.965 million, up from 1.955 million.
Earlier in the week, the NFIB business climate index for June missed the expectation of 98.7 with a reading of 98.5, down from 98.8 in May, while consumer credit for May fell to $5.1 billion, down from $16.87 billion in April, missing the forecast of $11 billion. Wholesale inventories for May matched the forecasted change of -0.3%.
In the UK, traders will be looking forward to Friday’s data, which includes the gross domestic product for May, the Industrial Production data for May and the manufacturing production for May, to be published earlier in the day.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid descending into oversold conditions.
Therefore, the bulls will look to stretch the late rebound towards 1.3618 or higher to 1.3662. On the other hand, the bears will look to pounce on profits at about 1.3529 or lower at 1.3489.
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 rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards 1.3364 or lower to 1.3161. On the other hand, the bulls will look to pounce on profits at about 1.3780 or higher at 1.3982.