Fundamental view:

Pound has suffered by some favorable Macro US data and concerns about Britain’s reopening.  Words by Philadelphia Fed President Patrick Harker that this is the time to think of thinking of tapering, these were part of the mix sending the dollar higher. There seems to be growing support to reduce the pace of dollar printing at the world’s most powerful central bank. The Fed currently buys bonds worth some $120 billion every month.

Britain Markit/CIPS Services PMI  on 3^rd June and Britain Markit/CIPS Construction PMI  on 4^th June favored bullish trend whereas Britain Markit/CIPS Manufacturing PMI on 1^st June and Britain BoE Mortgage Lending monthly report on 2^nd June favored bearish trend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE MPC Member Haldane Speech, US JOLTS Job Openings at Jun 08, US EIA Crude Oil Stocks Change at Jun 09, US Core CPI monthly report, US Initial Jobless Claims at Jun 10, UK Manufacturing Production monthly report, UK GDP monthly report and US Michigan Consumer Sentiment at Jun11. 

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.22% higher than the previous week. Maintaining high at 1.4249 and low at 1.4082 showed a movement of 167 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.4075 may open a clean path towards 1.3995 and may take a way down to 1.3908. Should 1.4242 prove to be unreliable resistance, the GBPUSD may raise upwards 1.4329 and 1.4409 respectively. Chart formation of bearish shark pattern in H4 chart favors prospects of a bearish trend. Harami pattern formation escalates the expectation for a bearish trend.