Fundamental view:

The British pound pulled back a bit in the week initially and bounced back to form a bullish rally. Corona virus and talks about future EU-UK relations have supported pound and triggered a bounce. Prime Minister Boris Johnson signaled the UK would prosper without a deal, and EU officials indicated talks could collapse. On the other hand, the British press talked about a French compromise on fisheries – a minuscule industry that politically punches above its weight – and that a deal is imminent. 

US TIC Long-Term Purchases on 18^th November and US Philly Fed Manufacturing Index on 19^th November favored bearish trend for the pair whereas US Empire State Manufacturing Index on 16^th November and Unemployment Rate on 19^th November favored bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are UK Markit/CIPS Manufacturing PMI, US Markit Manufacturing PMI at Nov 23, US CB Consumer Confidence Index at Nov 24, US GDP quarterly report, US Core Durable Goods Orders monthly report, US Initial Jobless Claims, FOMC Minutes at Nov 25, and UK Monetary Policy Report Hearings at Nov 26.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.01% lower than the previous week. Maintaining high at 1.3312 and low at 1.3165 showed a movement of 147 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 upside. A solid breakout above 1.3345 may open a clean path towards 1.3402 and may take a way up to 1.3492 Should 1.3198 prove to be unreliable support, the GBPUSD may sink downwards 1.3108 and 1.3051 respectively. Chart formation of cap and handle pattern in H4 chart favors prospects of a bullish trend. Harami pattern formation escalates the expectation for a bullish trend.