Fundamental view:

British pound tried to rally initially but later fell during the course of the trading week. In this week, Two meetings indicated that the Bank of England (BOE) and the Fed are moving to cutdown and then end with their extraordinary bond purchases. These programs have kept sovereign and commercial interest rates near historic lows since last March. The BOE and the Fed are moving toward ending their pandemic economic support. As of now, the Fed seems to be in the lead, and that has limited the sterling in this week.

US Existing Home Sales monthly report on 22nd Sep and US Initial Jobless Claims on 23rd September created uptrend whereas US Building Permits on 21st Sep and US Existing Home Sales on 22nd Sep created downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are US Core Durable Goods Orders monthly report at Sep 27, US CB Consumer Confidence Index at Sep 28, BoE Consumer Credit monthly report, Fed Chair Powell Speech at Sep 29, UK GDP quarterly report, US GDP quarterly report, US Initial Jobless Claims at Sep 30 and US ISM Manufacturing PMI at Oct 01.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 1.16% lower than the previous week. Maintaining high at 1.3751 and low at 1.3610 showed a movement of 141 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 1.3604 may open a clean path towards 1.3537 and may take a way down to 1.3463. Should 1.3745 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3819 and 1.3886 respectively. Chart formation of bearish gartley pattern in H4 chart favors prospects of a bearish trend. Shooting star pattern formation escalates the expectation for a bearish trend.