GBP/USD Falls Below 100-Hour MA To Trade At About 1.3527

The GBP/USD currency pair pulled back from the current week’s highs of about 1.3647 to trade at about 1.3527. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. However, the currency pair bounced back slightly to recover from 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. In the UK, the BRC Like-for-Like retail sales for April missed the expected (YoY) change of 0.8%, with a change of -3.4%. Traders will be waiting for the UK gross domestic product for March, the preliminary GDP for Q1, and the industrial and manufacturing production data for March on Thursday.

In the US, the monthly budget statement for April missed the expectation of $220 billion, with $215 billion, up from the previous month’s equivalent of $-167 billion. On the other hand, the consumer price index for April rose to 3.8% (YoY), up from 3.3% in March, beating the forecasted rate of 3.7%. The (MoM) equivalent fell to 0.6%, down from 0.9%, in line with expectations.

The Consumer Price Index ex-food and energy for the period outperformed the expected (MoM) rate of 0.3%, with a rate of 0.4%, up from 0.2% in March. The (YoY) equivalent also edged higher to 2.8%, up from 2.6%, beating the forecasted rate of 2.7%. Looking forward, traders will be waiting for the US producer price index data for April later on Wednesday.

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

Technically, the GBP/USD currency pair trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI has recently bounced back to recover from oversold conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.3585 or higher to 1.3647. On the other hand, the bears will look to pounce on profits to about 1.3462 or lower at 1.3396.

GBP/USD Technical Analysis (the Daily Chart)

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

Therefore, the bears will look to stretch the latest pullback towards 1.3341 or lower to 1.3168. On the other hand, the bulls will look to pounce on profits at about 1.3706 or higher at 1.3872.