On Wednesday, the GBP/USD currency pair extended Tuesday’s pullback from the current week’s highs of about 1.3487 to trade at 1.3399. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade slightly above the 100-hour moving average line, despite the latest pullback. Wednesday’s pullback prevented the currency pair from entering the overbought 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 US market. On Wednesday, the US consumer price index for February matched the forecasted (MoM) change of 0.3%, up from 0.2% in January. The (YoY) equivalent was also in line with the estimate of 2.4%, unchanged from the previous period. On the other hand, the consumer price index ex-food and energy for February edged slightly lower to 0.2% (MoM), down from 0.3% in January, as expected. The (YoY) equivalent was unchanged at 2.5%, in line with forecasts. 

Earlier in the week, the US NFIB Business Optimism Index for February missed the expectation of 99.7, with a reading of 98.8, down from 99.3. The existing home sales for February came in better than expected, with 4.09 million versus a forecast of 3.89 million, up from 4.03 million in January. Looking forward, traders will be waiting for the US housing data for January and the initial jobless claims for last week on Thursday. 

In the UK, the BRC Like-for-Like sales for February missed the expected (YoY) change of 2.4%, with a change of 0.7%. Traders will be waiting for the UK GDP data for January and the Manufacturing Production for the month on Friday.

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. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3292 or lower to 1.3202. On the other hand, the bulls will look to pounce on profits at about 1.3487 or higher at 1.3571.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair also trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 1.3151 or lower to 1.2917. On the other hand, the bulls will look to pounce on rebounds at about 1.3631 or higher at 1.3868.