Fundamental view:

BOE Gov Bailey Speaks creates on 29^th created some optimism for sterling whereas Favourable pending sales report for US on 29^th June 2020 created a bearish move for the pair. ADP Non-Farm Employment Change at 1st July acted catalyst for the downtrend move for dollar and boosted bullish move for the pair. Increasing cases of covid 19 cases in US sets fear on second wave of corona virus which has unfavourable effect on the safe haven asset – USD.

MPC Member Haskel and BOE Gov Bailey optimistic speech last week created confidence among the investors which created a bullish trend for the pair in previous week.

The major economic events deciding the movement of the pair in the next week are GBP Construction PMI, USD ISM Non-Manufacturing PMI at Jul 06, GBP Halifax House Price Index (HPI) monthly report at Jul 07, USD Unemployment Claims at Jul 09, and USD Core Producer Price Index (PPI) monthly report at Jul 10.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.09% lower than the previous week. Maintaining high at 1.2530 and low at 1.2251 showed a movement of 279 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 1.2592 may open a clean path towards 1.2700 and may take a way up to 1.2871. Should 1.2313 prove to be unreliable support, the GBPUSD may sink downwards 1.2142 and 1.2034 respectively. Chart formation of a Cup and saucer formation in H4 chart favors prospects of a bullish trend. Bullish spinning tool formation escalates the expectation for the bullish trend.