Fundamental view:

UK BOE Gov Bailey Speaks at Jul 13 and July 17 supported Pound and lead to uptrend of the pair whereas FOMC Member Harker Speech at Jul 15 and FOMC Member Williams Speech at Jul 16 strengthened greenback and acted as a catalyst for the downtrend of the pair. Outcomes of monthly reports like Industrial Production and Index of Services did not support sterling.

Amid all the negative sentiments in UK last week the pair showed a bearish move.

The major economic events deciding the movement of the pair in the next week are UK Public Sector Net Borrowing at Jul 21, US Crude Oil Inventories at Jul 22, US Unemployment Claims at Jul 23, UK Retail Sales monthly report, UK Flash Services PMI, US Flash Manufacturing PMI at Jul 24.

 GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.02% lower than the previous week. Maintaining high at 1.2666 and low at 1.2479 showed a movement of 187 pips.

In the upcoming week we expect GBP/USD to show a bullish trend.  The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.2661 may open a clean path towards 1.2757 and may take a way up to 1.2848. Should 1.2474 prove to be unreliable support, the GBPUSD may sink downwards 1.2383 and 1.2288 respectively. Chart formation of Gartley pattern formation in H4 chart favors prospects of a bullish trend. Bullish spinning tool formation escalates the expectation for a bullish trend.