Fundamental view:

The British pound pulled back a bit in the week initially and bounced back to form a bullish rally. US JOLTS Job Openings on 11th Aug and US Core PPI monthly report on 11th Aug created a bearish trend for the pair whereas Unemployment Rate on 11th Aug and Prelim GDP quarterly report on 12^th August favored a bullish trend.

The major economic events deciding the movement of the pair in the next week are Retail Price Index (RPI) yearly report, US Crude Oil Inventories, FOMC Meeting Minutes, OPEC-JMMC Meetings at Aug 19, and Unemployment Claims at Aug 20, UK Flash Manufacturing PMI at Aug 21.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.33% lower than the previous week. Maintaining high at 1.3142 and low at 1.3005 showed a movement of 138 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 1.3016 may open a clean path towards 1.2941 and may take a way down to 1.2878. Should 1.3153 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3217 and 1.3291 respectively. Chart formation of bearish bat pattern in H4 chart favors prospects of a bearish trend. Dark Cloud pattern formation escalates the expectation for a bearish trend.