Fundamental view:

The British pound rallied during most of the week to reach towards the 1.41 handle. The pound has rallied after UK PM Johnson presented a compelling exit strategy. “Incomparably better” – was the word Prime Minister Boris Johnson has described Britain’s position in the summer, after laying out a much-anticipated exit plan. The pound is boosted with the news on the other hand, the dollar declined as Treasury yields have been slowing their upward march. US stimulus, a full buildup to Nonfarm Payrolls and Britain’s vaccine statistics are all crucial to the next moves. The rapid move sent stocks sinking and the dollar surging on a mix of higher returns and safe-haven flows. GBP/USD badly suffered from a fall below 1.40.

The major economic events deciding the movement of the pair in the next week are UK Markit/CIPS Manufacturing PMI, US ISM Manufacturing PMI at Mar 01, UK MPC Member Tenreyro Speaks, US ADP Nonfarm Employment Change, US ISM Non-Manufacturing PMI at Mar 03, Fed Chair Powell Speech at Mar 04, and US Nonfarm Payrolls at Mar 05.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 1.44% higher than the previous week. Maintaining high at 1.4238 and low at 1.3888 showed a movement of 350 pips.

In the upcoming week we expect GBP/USD to show a bullish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout above 1.4142 may open a clean path towards 1.4365 and may take a way up to 1.4492. Should 1.3792 prove to be unreliable support, the GBPUSD may sink downwards 1.3665 and 1.3442 respectively. Chart formation of bullish Alt bat pattern in H4 chart favors prospects of a bullish trend. Hammer pattern formation escalates the expectation for a bullish trend.