GBP/USD Weekly Forecast (24th August 2020 – 28th August 2020)

Fundamental view:

The British pound was up in the week initially and later fell down. Britain CPI yearly report and Core CPI yearly report on 19^th Aug, US Unemployment Claims on 20th Aug, favored uptrend whereas US NAHB Housing Market Index on 17^th Aug and Britain GfK Consumer Confidence on 21^st Aug favored downtrend.

Dollar gained strength due to FOMC meeting release last week which made Dollar strong against Pound. In the upcoming week also we expect the Dollar to be strong against pound.

The major economic events deciding the movement of the pair in the next week are Confederation of British Industry (CBI) Realized Sales US CB Consumer Confidence at Aug 25, US Core Durable Goods Orders monthly report at Aug 26, US Prelim GDP quarterly report, Fed Chair Powell Speaks at Aug 27, BOE Gov Bailey Speaks, Jackson Hole Symposium at Aug 27 & 28.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.95% higher than the previous week. Maintaining high at 1.3267 and low at 1.3058 showed a movement of 208 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 downside. A solid breakout below 1.3009 may open a clean path towards 1.2930 and may take a way down to 1.2801. Should 1.3218 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3347 and 1.3426 respectively. Chart formation of Double top pattern in H4 chart favors prospects of a bearish trend. Bearish engulfing pattern formation escalates the expectation for a bearish trend.