Fundamental view:

The British pound has fallen a bit during the course of the week but recovered nicely to reach towards the 1.30 level. United Kingdom may have to slow its economy down, if not market down. We also have the Brexit situation, which is not getting any better, so that is something to pay attention to. Furthermore, the US dollar is perhaps strengthening due to the fact that there is a lot of fear out there and of course the possibility that we may be looking at a lack of stimulus for months, which of course has an effect on the greenback itself.

US CB Consumer Confidence on 27^th October and Britain M4 Money Supply on 29^th October created bullish atmosphere for the pair whereas US Unemployment Claims on 29^th October and  US  Personal Spending on 30^th October created bearish atmosphere for the pair.

The major economic events deciding the movement of the pair in the next week are US ISM Manufacturing PMI at Nov 02, US ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI at Nov 04, BoE Interest Rate Decision, BoE Governor Bailey Speech, Fed Interest Rate Decision at Nov 05, and US Nonfarm Payrolls at Nov 06.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.74% lower than the previous week. Maintaining high at 1.3079 and low at 1.2880 showed a movement of 199 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading below the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.2860 may open a clean path towards 1.2771 and may take a way down to 1.2662. Should 1.3059 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3169 and 1.3258 respectively. Chart formation of bearish gartley pattern in H4 chart favors prospects of a bearish trend. Bearish harami pattern formation escalates the expectation for a bearish trend.