Fundamental view:

The British pound has made a rally against greenback in the past week. The vaccine approval and hopes for US fiscal stimulus were decidedly positive, and all three themes will likely dominate the scene again, with UK growth and US consumer statistics having their time in the sun as well. Also Traders are essentially putting money to work ahead of the weekend, assuming that there will be some type of Brexit announcement. It does look more likely than not these days, but if it does not happen, this could set up nothing sort of a disaster for this pair.

In the past week, Britain M4 Money Supply m/m & Net Lending to Individuals monthly report on 30^th Nov and Britain BRC Shop Price Index on 2nd Dec created a bearish atmosphere and US Pending Home Sales m/m & Chicago PMI on 30^th Nov and Britain Nationwide HPI monthly report on 1^st Dec created a bullish atmosphere for the pair.

The major economic events deciding the movement of the pair in the next week are US Nonfarm Productivity quarterly at Dec 08, US JOLTS Job Openings at Dec 09, UK Manufacturing Production monthly report, UK GDP monthly report, Initial Jobless Claims at Dec 10, and US CPI monthly report at Dec 11.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 1.06% higher than the previous week. Maintaining high at 1.3539 and low at 1.3287 showed a movement of 252 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 upside. A solid breakout below 1.3299 may open a clean path towards1.3167 and may take a way down to 1.3047. Should 1.3551 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3671 and 1.3803 respectively. Chart formation of bearish crab pattern in H4 chart favors prospects of a bearish trend. Shooting star pattern formation escalates the expectation for a bearish trend.