Fundamental view:

Pound has been weaker against the greenback in the previous week. Brexit and US fiscal stimulus talk has left GBP/USD marginally lower in a week full of contradictory reports. Corona virus and elections are the major catalysts that will impact the pair in the upcoming week.

Britain BRC Retail Sales on 13th October and US Capacity Utilization Rate on 16^th October created bullish environment for the pair whereas US Core PPI monthly report on 14^th October and US Philly Fed Manufacturing Index on 15^th October created a bearish environment for the pair.

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Oct 19, US Building Permits at Oct 20, BoE Governor Bailey Speech, US Initial Jobless Claims at Oct 22, Retail Sales monthly report, and US Markit Manufacturing PMI at Oct 23.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.25% higher than the previous week. Maintaining high at 1.3082 and low at 1.2862 showed a movement of 220 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.2819 may open a clean path towards 1.2731 and may take a way down to 1.2599. Should 1.3039 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3170 and 1.1937 respectively. Chart formation of double top pattern in H4 chart favors prospects of a bearish trend. Bearish harami pattern formation escalates the expectation for a bearish trend.