On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3845 to trade at about 1.3790. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair continues to trade slightly above the 100-hour moving average line, despite the latest 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 U.S. market. On Thursday, the U.S. factory orders for November outperformed the expected change of 1.6%, with a change of 2.7%. Nonfarm productivity for Q3 matched the expectation of 4.9%, while unit labor costs for the quarter were also in line with the estimate of -1.9%. 

Elsewhere, the initial jobless claims for last week fell from 210k to 209k, missing the forecasted claim count of 205k. On Wednesday, the Federal Reserve chose to keep the base interest rate unchanged at 3.75%, in line with expectations.

Earlier in the week, the US housing price index for November exceeded the expectation of 0.3%, with a change of 0.6% (MoM). The durable goods orders for November also exceeded the expected change of 0.5%, with a change of 5.3%, while the durable goods orders ex-transportation outshone the estimate of 0.3%, with a change of 0.5%. 

Looking forward, traders will be waiting for the U.S. producer price index data for December on Friday, alongside the Chicago Purchasing Managers’ Index for January.

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. The 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3729 or lower to 1.3671. On the other hand, the bulls will look to pounce on profits at about 1.3845 or higher at 1.3903.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair has completed an upward breakout from a descending channel formation. The 14-day RSI also supports a bullish bias after entering overbought conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.4015 or higher to 1.4233. On the other hand, the bears will look to pounce on profits at about 1.3538 or lower at 1.3320.