Fundamental view:

Pound trades stronger against the greenback in the previous week.  The Bank of England monetary policy tweak has helped the pound to push up and the concerns about the weakness in the US economy have kept the dollar from rising up. BOE upgraded its economic forecasts as Britain’s successful vaccination campaign boosts the economy. Infections continue falling, and the country is on course to its full reopening due on June 21. 

Britain BoE Mortgage Approvals & BoE M4 Money Supply monthly report on 4^th May and US Initial Jobless Claims 4-Week Average on 6^th May created downtrend for the pair whereas US ISM Manufacturing PMI on 3^rd May and US Trade Balance on 4^th May created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech, US JOLTS Job Openings at May 11, UK Manufacturing Production monthly report, UK GDP quarterly report, US Core CPI monthly report, US EIA Crude Oil Stocks Change at May 12, US Initial Jobless Claims at May 13, US Retail Sales monthly report and Fed Industrial Production yearly report at May 14.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.21% higher than the previous week. Maintaining high at 1.4006 and low at 1.3800 showed a movement of 206 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 1.4062 may open a clean path towards 1.4137 and may take a way up to 1.4268. Should 1.3856 prove to be unreliable support, the GBPUSD may sink downwards 1.3725 and 1.3650 respectively. Chart formation of ascending triangle pattern in H4 chart favors prospects of a bullish trend. Engulfing pattern formation escalates the expectation for a bullish trend.