The GBP/USD currency pair on Wednesday pulled back off the current weekly highs of about 1.2739 to trade at about 1.2719. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair continues to trade several levels above the 100-hour moving average line despite the pullback. As a result, the currency pair is still trading close to the overbought levels of the 14-hour RSI.

GBP/USD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair is trading at the back of a relatively busy period in the US market. On Wednesday, the preliminary US gross domestic product for Q2 missed the annualised forecast of 2.4% with a rate of 2.1%.  The preliminary gross domestic product price index for the period also fell short of 2.2% with a rate of 2%.

The preliminary personal consumption expenditure prices for Q2 missed the expected change of 2.6% with a change of 2.5%, while the core personal consumption expenditures fell short of 3.8% with a change of 3.7%. Pending home sales for July outshone the estimated change of -0.6% with a change of 0.9%.

In the UK, Lending to Individuals for July fell to £1.4 billion down from £1.7 billion in the previous update, beating the forecasted figure of £1 billion. On the other hand, Mortgage Approvals for the month missed the estimated tally of 50.5k with a tally of 49.444k, while consumer credit missed £1.3 billion with a figure of £1.191 billion.

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

Technically, the GBP/USD currency pair appears to be trading within a descending channel formation in the 60-min chart. The hourly MACD seems to indicate a dissipating bullish momentum as it nears a downward crossover.

Therefore, the bears will be targeting extended pullbacks at about 1.2695 or lower at 1.2671. On the other hand, the bulls will look to pounce on rebounds at about 1.2739 or higher at 1.2762.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to be trading within a descending channel formation. However, the MACD seems to be about to complete a short-term crossover indicating a potential rebound.

Therefore, the bulls will be targeting long-term profits at about 1.2809 or higher at 1.2898. On the other hand, the bears will look to pounce on pullbacks at about 1.2639 or lower at 1.2547.