The GBP/USD currency pair on Thursday pulled back from the current six-week highs of about 1.1645 to trade at about 1.1598. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The currency pair seems to have rallied to trade several levels above the 100-hour moving average line. As a result, the pair moved into the overbought conditions of the 14-hour RSI before Thursday’s pullback.

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 U market. On Thursday, the US durable goods orders for September missed the expected change of 0.6% with a change of 0.4%. On the other hand, durable goods orders ex-defence outperformed the expectation of 0% with a change of 1.4%, while durable goods ex-transportation missed the forecasted change of 0.2% with a change of -0.5%.

Elsewhere, the preliminary annualised US gross domestic product for Q3 outshone the forecasted change of 2.4% with a change of 2.6%, while the gross domestic product price index for the period missed 5.3% with a change of 4.1%.

In the UK, the economy got a much-needed boost with the election of Rishi Sunak as the leader of the Conservative Party and the third Prime Minister of the UK in 2022. Earlier in the week, the preliminary UK S&P Global/CIPS Services PMI for October missed the expected reading of 49 with a reading of 47.5. The manufacturing and composite equivalents also came short of expectations.

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

Technically, the GBP/USD currency pair seems to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current rally towards 1.1645 or higher to 1.1737. On the other hand, the bears will look to pounce on profits at about 1.1541 or lower at 1.1446.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about 1.1252 or lower at 1.0860. On the other hand, the bulls will be targeting extended rebounds at about 1.1896 or higher at 1.2288.