Fundamental view:

Pound has shown an uptrend against the greenback. Two main reasons behind the greenback downtrend are the signals from the Federal Reserve. Firstly Dallas Fed President Robert Kaplan showed readiness on considering tapering the bank’s $120 billion/month bond-buying scheme as a response to the Delta COVID-19 variant. And next is the bank announcement that its Jackson Hole Symposium would be held virtually. As far as coronavirus is concerned, the US Food & Drugs Administration (FDA) provided a reason to be cheerful, by giving permanent approval to the Pfizer/BioNTech vaccine which turned to be a positive news and adding to it, the cases are turning in to 2 digit numbers and fell in states that were initially hit hard.

US GDP quarterly report on 26th August and US Dallas Fed Trimmed Mean PCE Inflation Rate on 27th August created downtrend whereas US Markit Manufacturing PMI on 23rd August and US EIA Cushing Crude Oil Stocks Change on 25th August created uptrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Consumer Credit monthly report, US CB Consumer Confidence Index at Aug 31, UK Markit/CIPS Manufacturing PMI, US ADP Nonfarm Employment Change, US ISM Manufacturing PMI at Sep 01, US Initial Jobless Claims at Sep 02 and US Nonfarm Payrolls at Sep 03.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.70% lower than the previous week. Maintaining high at 1.3781 and low at 1.3606 showed a movement of 175 pips.

In the upcoming week we expect GBP/USD to show a bullish trend.  The currency pair is trading above the 50 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.3824 may open a clean path towards 1.3890 and may take a way up to 1.3999. Should 1.3649 prove to be unreliable support, the GBPUSD may sink downwards 1.3540 and 1.3474 respectively. Chart formation of cup and handle pattern in H4 chart favors prospects of a bullish trend. Hammer pattern formation escalates the expectation for a bullish trend.