The GBP/USD currency pair on Tuesday pulled back from 1.2093 to trade at about 1.2042 following the latest round of data. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

Tuesday’s pullback pushed the currency pair several levels below the 100-hour moving average line. As a result, the pair avoided rising 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 both markets. On Tuesday, the UK BRC Like-for-Like retail sales for January outperformed the forecasted (YoY) change of -1.4% with a change of 3.9%.

On the other hand, the Halifax House Prices for January missed the expected (MoM) change of 0.4% with a change of 0%, while the Halifax House Prices for the 3 months ended January 2023 beat the (YoY) expectation of -0.3% with a change of 1.9%. On Monday, the UK’s S&P Global Construction PMI for January missed the estimate of 49.5 with a reading of 48.4.

In the US, the goods and services trade balance for December beat the expectation of $-68.5 billion with a reading of $-67.4 billion. The IBD/TIPP economic optimism for February registered a reading of 45.1 compared to the previous period’s equivalent of 42.3. On the other hand, the Redbook Index for February posted a change of 4.3% down from the previous period’s equivalent of 4.9%. 

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. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be targeting short-term profits at about 1.2001 or lower at 1.1960. On the other hand, the bulls will look to pounce on rebounds at about 1.2093 or higher at 1.2132.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to be about to complete a double-top reversal pattern formation. This indicates an attempt by the bears to take control of the currency pair.

Therefore, the bears will be looking to extend the current pullback toward 1.1844 or lower to 1.1641. On the other hand, the bulls will be targeting profits at about 1.2227 or higher at 1.2439.