The GBP/USD currency pair on Friday rallied towards the key level 1.3100 despite mixed series of economic data released over the last few days. The currency pair has been on a bullish run since January 13 after bottoming out at around 1.2960.
The pair has now crossed over the 100-hour and the 200-hour SMA lines while the RSI indicator shows that the overbought levels could be reached soon.
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 the UK and the US markets following the latest round of economic data. On Monday, the UK Manufacturing Production for November missed the (MoM) expectation of -0.3% with a change of 1.7%. The (YoY) figure also came short of -1.7% with -2.0%.
The (MoM) change in Industria production of -1.2% was also below the expected level of -0.1% while the Consumer Price index for the same month also had a disappointing (MoM) change of -0.3% versus 0.0%. And on Wednesday, the Retail Price Index and the PPI core output also came short of expectations. Friday also saw retail sales come out well short of the predicted levels.
In the US, the CPI measurements for (MoM) change in December were well below expectations, but the (YoY) data matched the forecasted changes. On Wednesday, the PPI ex-food and Energy for December missed the (MoM) change of 1.3% with 1.1%. And on Thursday, Retail Sales ex-autos beat the expectation of 0.5% with 0.7% (MoM) for December.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair appears to be trading in a consolidative triangle formation, which could result in a breakout. The pair has recently crossed above the 100-hour and the 200-hour SMAs, which indicates a short-term bullish bias.
Therefore, the bulls will be targeting short-term profits at around 1.3141 or higher at 1.3192. On the other hand, the bears will be looking to pounce for profits at around 1.3051 or lower at 1.2991.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair appears to be trading within a descending channel. However, the pair has recently made a major rebound resulting in a massive rally that triggered a channel breakout.
Therefore, the bulls will be targeting long-term profits at around 1.3192 or higher at 1.3342. On the other hand, the bears will hope for an immediate pullback towards 1.2944 or lower at 1.2778.