Fundamental view:

The British pound has shown itself to be resilient in the last week, breaking to a fresh, new high, before giving back some of the gains Britain CBI Realized Sales on 25^th August and US Prelim GDP quarterly report on 27th Aug created a bearish trend for the pair whereas US CB Consumer Confidence on 25th Aug and US Natural Gas Storage report on 27^th August favored a bullish trend.

Until Federal Reserve changes its tone, Pound will be stronger but Brexit talks might lurk the trend, which cannot be ignored.

The major economic events deciding the movement of the pair in the next week are US ISM Manufacturing PMI at Sep 01, UK MPC Member Broadbent Speaks, US ADP Non-Farm Employment Change at Sep 02, UK Final Services PMI, US ISM Non-Manufacturing PMI at Sep 03, and US Unemployment Rate at Sep 04.

GBP/USD Weekly outlook

Technical View:

Last week’s high was 0.67% higher than the previous week. Maintaining high at 1.3356 and low at 1.3053 showed a movement of 303 pips.

In the upcoming week we expect GBP/USD to show a bullish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.3454 may open a clean path towards 1.3556 and may take a way up to 1.3757. Should 1.3151 prove to be unreliable support, the GBPUSD may sink downwards 1.2951 and 1.2848 respectively. Breakout of the W pattern favors prospects of a bullish trend. Bullish engulfing pattern formation escalates the expectation for a bullish trend.