Fundamental view:

The Britain pound has made a fall against the greenback during the previous week. The biggest worry is the ongoing spread of the Delta variant of coronavirus, which may put a question on the already delayed reopening due on July 19. On the other hand, Along with favorable US data, Fed’s move also favored the dollar. Robert Kaplan, President of the Dallas branch of the Federal Reserve, is a known supporter of reducing the bank’s bond-buying scheme. He sounded the same comments and was joined by Fed Governor Christopher Waller. Amidst the entire catalysts dollar seems to be a king against pound.

US S&P/CS HPI Composite-20 n.s.a. monthly report on 29th June and US Continuing Jobless Claims on 1st July favored uptrend for the pair whereas Britain Nationwide HPI monthly report on 29th June and Britain GDP quarterly report on 30th June favored downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are US ISM Non-Manufacturing PMI at July 06, UK Labour Productivity quarterly report, FOMC Minutes at July 07, US Initial Jobless Claims, US EIA Crude Oil Stocks Change at July 08 and UK Manufacturing Production monthly report, UK GDP monthly report, US Wholesale Inventories monthly report at July 09.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.44% lower than the previous week. Maintaining high at 1.3939 and low at 1.3730 showed a movement of 209 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 downside. A solid breakout below 1.3726 may open a clean path towards 1.3624 and may take a way down to 1.3517. Should 1.3935 prove to be unreliable resistance, the GBPUSD may raise upwards 1.4042 and 1.4144 respectively. Chart formation of bearish flag pattern in H4 chart favors prospects of a bearish trend. Bearish engulfing pattern formation escalates the expectation for a bearish trend.