Fundamental view:

The British pound has rallied significantly during the course of the week, reaching towards the 1.30 level above. That is a large, round, psychologically significant figure and of course that is something that will catch a lot of attention. Britain Claimant Count Change, Average Earnings Index on 15^th September, US TIC Long-Term Purchases on 17^th September and US Unemployment on 17^th September favors uptrend for the pair whereas  US Empire State Manufacturing on 15^th September and Britain PPI Input and PPI output monthly report on 16^th Septembers favors downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech, Fed Chair Powell Testimony at Sep 22, UK Markit/CIPS Manufacturing PMI, US Markit Manufacturing PMI, EIA Crude Oil Stocks Change at Sep 23, and US Core Durable Goods Orders monthly report at Sep 25.  

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 1.90% lower than the previous week. Maintaining high at 1.3007 and low at 1.2788 showed a movement of 219 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 1.2805 may open a clean path towards 1.2687 and may take a way down to 1.2586. Should 1.3023 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3125 and 1.3242 respectively. Chart formation of bearish gartley pattern in H4 chart favors prospects of a bearish trend. Three inside down pattern formation escalates the expectation for a bearish trend.