Fundamental view:

The British pound showed a strong trend against the greenback in the previous week. Pound benefited from the UK reopening and favorable data. On the other hand, The news that Fed be forced to tighten its policy prematurely and robust inflation figures supported the greenback. In the UK, Prime Minister Boris Johnson made an announcement that a new phase of easing coming on May 17, yet concerns about the reopening have emerged as the Indian strain of the virus is spreading rapidly. The government is considering accelerating the campaign in areas where the variant is prevalent.

US Core CPI monthly report and US EIA Crude Oil Stocks Change on 12th May and US Business Inventories on 14th May created downtrend for the pair whereas Britain Halifax HPI monthly report on 10th May and Britain RICS House Price Balance on 13^th May created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are UK Claimant Count Change, US Building Permits at May 18, US EIA Crude Oil Stocks Change, FOMC Minutes at May 19, US Initial Jobless Claims, Philadelphia Fed Manufacturing Index at May 20, UK Retail Sales monthly report, and US Existing Home Sales at May 21.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 1.15% higher than the previous week. Maintaining high at 1.4167 and low at 1.3999 showed a movement of 168 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 downside. A solid breakout above 1.4170 may open a clean path towards 1.4252 and may take a way up to 1.4338. Should 1.4002 prove to be unreliable support, the GBPUSD may sink downwards 1.3916 and 1.3834 respectively. Chart formation of inverted ascending scallop pattern in H4 chart favors prospects of a bullish trend. Spinning top pattern formation escalates the expectation for a bullish trend.