Fundamental view:
The British pound has rallied significantly to take out the 1.40 level. Reaching this level is a mix of British of upbeat UK corona virus statistics and a twist lower in the dollar amid yield-moving stimulus speculation. The British variant is the reason or excuse of several countries struggling to cope with COVID-19. In the UK, where this strain known as the Kent variant originated, victory seems to be at hand. Recent coronavirus infections, hospitalizations, and deaths are all falling sharply.
US NY Fed Empire State Manufacturing on 16th Feb and US TIC Net Long-Term Transactions on 17th Feb favored bearish trend for the pair whereas Britain HPI yearly report on 17th Feb and US Housing Starts on 18th Feb favored bullish trend for the pair.
The major economic events deciding the movement of the pair in the next week are UK Claimant Count Change, Fed Chair Powell Testimony, US CB Consumer Confidence Index at Feb 23, BoE Governor Bailey Speech, Fed Chair Powell Testimony at Feb 24, US GDP quarterly report, US Core Durable Goods Orders monthly report, and US Initial Jobless Claims at Feb 25.
GBP/USD Weekly outlook: