Fundamental view:

Pound closed the week with a bullish candle but did not make out much with the Dollar sell-off. As far the employment report is considered, US Nonfarm Payrolls figures fell well short of already-lowered projections, coming out at only 235,000 positions gained in August. On the other side for pond, Brexit-related shortages on supermarket shelves and also stubbornly high coronavirus cases continued stymieing sterling’s advance. And the infections have drifted somewhat lower. The US is lagging, with only a deceleration in the number of new cases.

US HPI on 31st August and US EIA Crude Oil Stocks Change on 1st September created downtrend whereas US Pending Home Sales monthly report on 30th August and Britain Nationwide HPI yearly report on1st September created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are UK Markit/CIPS Construction PMI at Sep 06, US JOLTS Job Openings, FOMC Member Williams Speech at Sep 08, US Initial Jobless Claims, US EIA Crude Oil Stocks Change at Sep 09, UK Manufacturing Production monthly report, UK GDP monthly report and US WASDE Report at Sep 10.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.81% higher than the previous week. Maintaining high at 1.3892 and low at 1.3731 showed a movement of 161 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 1.3925 may open a clean path towards 1.3989 and may take a way up to 1.4086. Should 1.3764 prove to be unreliable support, the GBPUSD may sink downwards 1.3667 and 1.3603 respectively. Chart formation of bullish shark pattern in H4 chart favors prospects of a bullish trend. Harami pattern formation escalates the expectation for a bullish trend.