GBP/USD Weekly Forecast (14th December 2020 – 18th December 2020)

Fundamental view:

The British pound has gotten hit rather hard during the week, after trying to be somewhat optimistic. Meeting between Boris and Ursula has produced nothing. No deal at dinner but perhaps over the weekend? A nerve-wracking week concludes with growing fears Brexit talks could collapse. Apart from the all-important deliberations, rate decisions on both sides of the pond are eyed.

In the past week, Britain Halifax HPI monthly report on 7^th Dec and US NFIB Small Business Index on 8^th Dec created bullish atmosphere for the pair whereas US JOLTS Job Openings on 9^th Dec and US CPI monthly report on 10^th Dec created bearish atmosphere for the pair.

The major economic events deciding the movement of the pair in the next week are UK Claimant Count Change at Dec 14, US Retail Sales monthly report, Fed Interest Rate Decision at Dec 16, US Building Permits, BoE Interest Rate Decision and US Initial Jobless Claims at Dec 17.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.46% lower than the previous week. Maintaining high at 1.3478 and low at 1.3135 showed a movement of 343 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 1.3081 may open a clean path towards 1.2936 and may take a way down to 1.2738. Should 1.3424 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3622 and 1.3767 respectively. Chart formation of symmetrical triangle pattern breakout in H4 chart favors prospects of a bearish trend. Spinning top pattern formation escalates the expectation for a bearish trend.