Fundamental view:

US Unemployment Claims on 6th Aug, US ADP Non-Farm Employment Change on 5th Aug, US Average Hourly Earnings monthly report on 7th created a bearish move for the pair whereas US Final Manufacturing PMI on 3rd Aug, Britain Construction PMI on 6th Aug, US Final Wholesale Inventories monthly report on 7th Aug favored bullish environment for the pair.

BoE interest rate released last week was not favorable and overall the pair showed a bearish move.

The major economic events deciding the movement of the pair in the next week are UK Unemployment Rate, US Core PPI monthly report at Aug 11, UK Prelim GDP quarterly report, US Core CPI monthly report at Aug 12, US Unemployment Claims at Aug 13, US Core Retail Sales monthly report at Aug 14.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.12% higher than the previous week. Maintaining high at 1.3185 and low at 1.2981 showed a movement of 204 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading above the 50 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.2961 may open a clean path towards 1.2869 and may take a way down to 1.2457. Should 1.3165 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3277 and 1.3370 respectively. In H4 chart Breakout of an Ascending triangle to the downside favors prospects for a bearish trend. 3 Black crows formation escalates the expectation for a bearish trend.