Fundamental view:

The British pound rallied against the greenback in the previous week but then pulled back to reach a level of 1.3750 level. Dollar was supported with the Higher yields, with every move in US ten-year yields rocking the greenback. The world’s reserve currency advanced each time the global benchmark jumped above 1.5% and retreated when it hovered closer to 1.4%. Investors were closely following the Fed, data, and stimulus developments.

Britain BoE Consumer Credit monthly report and  BoE M4 Money Supply monthly report on 1^st March and Britain Markit/CIPS Services PMI on 3^rd March created downtrend for the pair whereas US Nationwide HPI monthly report on 2^nd March and Britain Markit/CIPS Construction on 4^th March favored uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech at Mar 08, US CPI monthly report, EIA Crude Oil Stocks Change at Mar 10, US JOLTS Job Openings, Initial Jobless Claims at Mar 11, UK Manufacturing Production monthly report, UK GDP monthly report and US Michigan Consumer Sentiment at Mar 12.

 GBP/USD Weekly outlook:

Technical View:

Last week’s high was 1.57% lower than the previous week. Maintaining high at 1.4017 and low at 1.3779 showed a movement of 238 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 1.3732 may open a clean path towards 1.3636 and may take a way down to 1.3494. Should 1.3970 prove to be unreliable resistance, the GBPUSD may raise upwards 1.4112 and 1.4208 respectively. Chart formation of symmetrical triangle pattern breakout downside in H4 chart favors prospects of a bearish trend. Harami pattern formation escalates the expectation for a bearish trend.