Fundamental view:

The British pound went back and forth during the course of the trading week. President Joe Biden’s fresh energy has been inspiring markets – the freshly inaugurated Commander-in-Chief’s efforts to pass his $1.9 trillion stimulus bill and call for unity have boosted markets and weighed on the safe-haven dollar.

Prime Minister Boris Johnson is focusing on the appalling mortality figures, investors are eyeing immunization statistics to monitor progress – as the PM tied the easing of restrictions to the campaign. The UK is the leader in the West, and reaching 10% from the current 7.47% of the population would be a substantial achievement.

Britain Public Sector Net Borrowing on 22^nd January favored downtrend whereas US NAHB Housing Market Index on 20^th January and US Initial Jobless Claims on 21^st January favored uptrend for the pair last week.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech at Jan 28, US CB Consumer Confidence Index at Jan 26, UK Nationwide HPI yearly report, US Core Durable Goods Orders monthly report, Fed Interest Rate Decision at Jan 27, US GDP quarterly report and US Initial Jobless Claims at Jan 28.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.26% higher than the previous week. Maintaining high at 1.3746 and low at 1.3520 showed a movement of 226 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 1.3554 may open a clean path towards 1.3423 and may take a way down to 1.3327. Should 1.3780 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3876 and 1.4007 respectively. Chart formation of symmetrical triangle pattern in H4 chart favors prospects of a bearish trend. Three black crows pattern formation escalates the expectation for a bearish trend.