Fundamental view:

GBP/USD has been seeing a rock and roll trend in response to US yields and Jeo Biden’s plan. The main development of the past week has been President Joe Biden’s $2.25 trillion infrastructure plan. Treasuries fluctuated and caused jitters which allowed each currency to trade somewhat differently against it. For sterling, that was an advantage.  In the UK, which is more advanced in its immunization drive, the situation of Covid -19 is improving.

US Dallas Fed Manufacturing Index on 29th March and US S&P/CS HPI Composite-20 y/y & US CB Consumer Confidence Index on 30^th March created downtrend for the pair whereas Britain Business Investment quarterly report & Britain GDP quarterly report on 31^st March and Britain Markit/CIPS Manufacturing PMI on 1^st April created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are IMF Meeting, US ISM Non-Manufacturing PMI at April 05, US JOLTS Job Openings at April 06,UK Markit/CIPS Services PMI, FOMC Minutes at April 07, US Initial Jobless Claims, Fed Chair Powell Speech at April 08 and BoE Quarterly Bulletin at April 09.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.18% lower than the previous week. Maintaining high at 1.3852 and low at 1.3706 showed a movement of 146 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout below 1.3737 may open a clean path towards 1.3648 and may take a way down to 1.3591. Should 1.3883 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3940 and 1.4029 respectively. Chart formation of bearish gartley pattern in H4 chart favors prospects of a bearish trend. Bearish engulfing pattern formation escalates the expectation for a bearish trend.