Fundamental view:

British pound initially fell during the week but then turned around to show signs of strength again. Early in the week, US President Donald Trump left the hospital as he recovers from his COVID-19 episode, and abruptly cut off talks with Democrats. However, sinking stocks and tumbling poll figures probably convince the commander-in-chief to change tack, which could boost markets, and weigh on the safe-haven dollar. 

Britain Housing Equity Withdrawal on 6th Oct and Britain HPI yearly report on 7^th October created downtrend for the pair whereas Britain RICS House Price Balance on 8^th October and US Unemployment Claims on 8^th October created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech Oct 12, UK Claimant Count Change, BoE Governor Bailey Speech Oct 13, Federal Budget Balance at Oct 13, US Initial Jobless Claims at Oct 15, and US Retail Sales monthly report at Oct 16.

 GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.55% higher than the previous week. Maintaining high at 1.3049 and low at 1.2845 showed a movement of 204 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 1.3117 may open a clean path towards 1.3185 and may take a way up to 1.3321. Should 1.2913 prove to be unreliable support, the GBPUSD may sink downwards 1.277 and 1.2709 respectively. Chart formation of diamond top pattern in H4 chart favors prospects of a bullish trend. Bullish engulfing pattern formation escalates the expectation for a bullish trend.