Fundamental view:

Pound traded low against the greenback this week. Prime Minister Boris Johnson’s made a proposal of12 billion sterling tax increase which is designed to help the National Health Service and might help the way for a change in policy from the Bank of England (BOE) Whereas the threat of the Covid-19 delta variant and the potential for the Federal Reserve to announce a tapering of its bond purchases helped the dollar to move higher.

US EIA Crude Oil Stocks Change on 9th Sep and Britain GDP monthly report on 10th Sep created uptrend whereas Britain Markit/CIPS Construction PMI on 6th Sep and US Wholesale Sales monthly report on 10th Sep created downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are US Federal Budget Balance at Sep 13, UK Claimant Count Change at Sep 14, US EIA Crude Oil Stocks Change at Sep 15, US Retail Sales monthly report, US Initial Jobless Claims at Sep 16, UK Retail Sales monthly report and US Michigan Consumer Sentiment at Sep 17.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.03% lower than the previous week. Maintaining high at 1.3888 and low at 1.3726 showed a movement of 162 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 1.3902 may open a clean path towards 1.3976 and may take a way up to 1.4064. Should 1.3740 prove to be unreliable support, the GBPUSD may sink downwards 1.3652 and 1.3578 respectively. Chart formation of symmetrical triangle pattern in H4 chart favors prospects of a bullish trend. Bullish harami pattern formation escalates the expectation for a bullish trend.