On Thursday, the GBP/USD currency pair pulled back from the session highs of about 1.3278 to trade at about 1.3225. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair has now fallen to trade several levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering the oversold 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 both markets. On Thursday, the UK gross domestic product for September outperformed the (MoM) forecast of 0%, with a change of 0.2%.
The preliminary gross domestic product for Q3 matched the forecasted (QoQ) and (YoY) changes of 0.7% and 1.7%, respectively. Industrial production for September exceeded the estimated (MoM) change of -0.3%, with a change of 0.3%, while manufacturing production for the period outshone -0.5%, with a change of 0.7%.
In the US, the initial jobless claims for last week increased to 200k, up from the preceding week’s claim count of 191k, and above the forecast of 195k. The US existing home sales change for October came in at -0.5% compared to 1% in September.
Earlier in the week, the US consumer price index for October fell to 0.4% (MoM), down from 0.6% in September, but still higher than the forecast rate of 0.3%. The consumer price index ex-food and energy for the period remained steady at 0.3%, ahead of the forecast (MoM) change of 0.2%.
GBP/USD Technical Analysis (the 60-min Chart)
Technically, the GBP/USD currency pair trades within a descending channel formation on the 60-minute chart. The 14-hour RSI has also recently pulled back in an attempt to re-enter oversold conditions.
Therefore, the bears will look to extend the current pullback towards 1.3169 or lower, down to 1.3110. On the other hand, the bulls will look to pounce on rebounds at about 1.3278 or higher, up to 1.3334.
GBP/USD Technical Analysis (the Daily Chart)
In the daily chart, the GBP/USD currency pair trades within a sideways channel formation. However, the 14-day RSI has recently pulled back to move closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 1.3058 or lower, down to 1.2886. On the other hand, the bulls will look to pounce on rebounds at about 1.3384 or higher, up to 1.3556.
