Fundamental view:

The British pound initially pulled back during the course of the week only to shoot higher and reach towards the 1.34 level. An exit from the pandemic is more powerful than a Brexit deal – at least in unleashing late November’s rally. EU-UK negotiations remain significant, but also, the calendar is making a welcome comeback, with a full slate of US economic indicators. 

US Flash Manufacturing PMI on 23^rd Aug created bearish trend for the pair whereas Britain Flash Manufacturing PMI on 23^rd Aug and Britain CBI Realized Sales on 24^th Aug created bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are OPEC Meetings at Nov 30, UK Markit/CIPS Manufacturing PMI, US ISM Manufacturing PMI, Fed Chair Powell Testimony at Dec 01, US ADP Nonfarm Employment Change at Dec 02, US ISM Non-Manufacturing PMI at Dec 03, UK Markit/CIPS Construction PMI and US Nonfarm Payrolls at Dec 04. 

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.65% higher than the previous week. Maintaining high at 1.3398 and low at 1.3263 showed a movement of 135 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 downside. A solid breakout above 1.3381 may open a clean path towards 1.3456 and may take a way up to 1.3515. Should 1.3247 prove to be unreliable support, the GBPUSD may sink downwards 1.3188 and 1.3113 respectively. Chart formation of bullish gartley pattern in H4 chart favors prospects of a bullish trend. Spinning top pattern formation escalates the expectation for a bullish trend.