Fundamental view:

UK M4 Money Supply monthly report on 29th, US Goods Trade Balance on 29th US Core Durable Goods Orders monthly report created bearish move for the pair whereas UK CBI Realized Sales on 28th, US CB Consumer Confidence on 28^th created favorable environment for GBP and favored a bullish trend for the pair.

US- Sino tension along with the delay in the election in US also made an impact in the greenback negatively created a bullish trend last week.

The major economic events deciding the movement of the pair in the next week are UK Final Manufacturing PMI, US ISM Manufacturing PMI at Aug 03, US ISM Non-Manufacturing PMI at Aug 05, BOE Monetary Policy Report, US Unemployment Claims at Aug 06, and US Average Hourly Earnings monthly report at Aug 07.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 2.86% higher than the previous week. Maintaining high at 1.3170 and low at 1.2784 showed a movement of 385 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.2854 may open a clean path towards 1.2626 and may take a way down to 1.2469. Should 1.3239 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3397 and 1.3625 respectively. Chart formation of Bearish ABCD pattern in H4 chart favors prospects of a bearish trend. Bearish Engulfing formation escalates the expectation for a bearish trend.