Fundamental view:

Pound showed a downward movement against the dollar in this week. All the brits are demanding for the quarantine due to rapid spread of delta virus elsewhere The UK is not only get in suffering from the rapid spread of the Delta variant, and broader markets have come to terms with the strain’s stranglehold on the recovery. The upswing in US infections and their impact on the economy made the investors rush towards to the safe haven asset- dollar which worked against the pound.

US Housing Starts on 20th July and Britain Retail Sales yearly report on 23rd July created downtrend whereas Britain Public Sector Net Borrowing on 21st July and US EIA Crude Oil Imports Change on 21st July created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are UK Nationwide HPI yearly report, US Core Durable Goods Orders monthly report, US CB Consumer Confidence Index at July 27, Fed Interest Rate Decision at July 28, BoE Consumer Credit monthly report, US GDP quarterly report, US Initial Jobless Claims at July 29 and US Michigan Consumer Sentiment at July 30.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.88% lower than the previous week. Maintaining high at 1.3787 and low at 1.3572 showed a movement of 215 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 1.3619 may open a clean path towards 1.3488 and may take a way down to 1.3404. Should 1.3834 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3918 and 1.4049 respectively. Chart formation of rising wedge pattern in H4 chart favors prospects of a bearish trend. Harami pattern formation escalates the expectation for a bearish trend.