Fundamental view:

The UK Pound traded high against the US dollar this week, despite the US dollar strength. The UK pound still remains benefited from the hawkish BoE interest rate decision of last week.  The US Bureau of Economic Analysis reported on Thursday that annual inflation, as measured by the Consumer Price Index (CPI) had made a jump to its highest level since 4 decades at 7.5% in January. which is high than the market expectation of 7.2%.The stronger than expected inflation figure boosted the US dollar.

Woes regarding Brexit weighs on the GBP bulls since European Union (EU) and UK are attempting to start again the negotiations over the post-Brexit trading relationship in Northern Ireland (NI) which has failed till now. Amidst all the catalysts, Pound managed to portray uptrend against the greenback.

In this week, UK Halifax HPI monthly report on 7^th February, US EIA Crude Oil Stocks Change on 9^th February and US CPI monthly and yearly report on 10^th February framed bearish outlook whereas UK RICS House Price Balance on 10^th February and US Michigan Consumer Sentiment on 11^th February framed bullish outlook for the quote.

The major economic events deciding the movement of the pair in the next week are UK Claimant Count Change, NY Fed Empire State Manufacturing Index at Feb 15, US Retail Sales monthly report, EIA Crude Oil Stocks Change, FOMC Minutes at Feb 16, Initial Jobless Claims, US Philadelphia Fed Manufacturing Index at Feb 17 and UK retail sales monthly report at Feb 18.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.12% higher than the previous week. Maintaining high at 1.3643 and low at 1.3490 showed a movement of 153 pips.

In the upcoming week we expect GBP/USD to show a bearish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. Should 1.3486 proves to be unreliable support then the pair may fall further to 1.3411 and 1.3333 respectively whereas a solid breakout above 1.3639 will open a clear path upward to 1.3717 and then will further raise up to 1.3792. Chart formation of alt bat pattern in H4 chart favors prospects of a bearish trend. Bearish harami pattern formation escalates the expectation for a bearish trend.