Fundamental view:

The British pound went back and forth against the US dollar in this week. The pound received the help from Bank of England Governor Andrew Bailey, who said he is ready to act against rising inflation. His words have contrasted that of other central bankers that have mostly stuck with the say that increasing prices are only “transitory”. On the other hand, The Federal Reserve is also moving toward raising rates – but that is likely only in the summer of 2022, according to bond markets. In Britian, coronavirus has unfortunately made a way to center-stage. Cases, hospitalizations and also deaths are on the rise, raising fears of new lockdowns.

US Building Permits on 19th Oct and US EIA Crude Oil Stocks Change on 20th Oct created bullish trend whereas Britain CPI monthly report on 20th Oct and Britain Public Sector Net Cash Requirement on 21st Oct created bearish trend for the pair.

The major economic events deciding the movement of the pair in the next week are US CB Consumer Confidence Index at Oct 26, UK Nationwide HPI yearly report, US Core Durable Goods Orders monthly report at Oct 27, US GDP quarterly report, US Initial Jobless Claims at Oct 28, BoE Consumer Credit monthly report and US Michigan Consumer Sentiment at Oct 29.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.44% higher than the previous week. Maintaining high at 1.3834 and low at 1.3709 showed a movement of 125 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 1.3824 may open a clean path towards 1.3891 and may take a way up to 1.3949. Should 1.3699 prove to be unreliable support, the GBPUSD may sink downwards 1.3641 and 1.3574 respectively. Chart formation of bullish butterfly pattern in H4 chart favors prospects of a bullish trend. Bullish engulfing pattern formation escalates the expectation for a bullish trend.