Fundamental view:

The British pound fell significantly during the course of the week. Pound has seen to be sliding around dollar strength and concerns is increasing about the UK’s vaccination campaign. The greenback is building on infrastructure plans to rise, and more details are due in the upcoming week which supports the dollar. US President Joe Biden is about to unveil a solid $3 trillion infrastructure program that also adds strength to the US economy and perhaps push inflation higher.

EIA Crude Oil Imports Change on 24^th March and US GDP Price Index quarterly report & US GDP Sales quarterly report on 25^th March favored uptrend for the pair whereas Britain Employment Change 3-months & US Richmond Fed Manufacturing Index on 23^rd March and Britain CPI monthly report on 24^th March favored downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are US CB Consumer Confidence Index at Mar 30, UK GDP quarterly report, US ADP Nonfarm Employment Change at Mar 31, US Initial Jobless Claims, UK Markit/CIPS Manufacturing PMI, US ISM Manufacturing PMI, OPEC Meeting at April 01 and US Nonfarm Payrolls at April 02.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.89% lower than the previous week. Maintaining high at 1.3877 and low at 1.3671 showed a movement of 206 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 1.3676 may open a clean path towards 1.3570 and may take a way down to 1.3470. Should 1.3882 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3982 and 1.4087 respectively. Chart formation of descending triangle pattern in H4 chart favors prospects of a bearish trend. Bearish harami pattern formation escalates the expectation for a bearish trend.