Fundamental view:

The British pound tried to form rally in the week initially but later fell down to 1.3 levels. Britain Nationwide HPI on 1^st Sept and Britain Nationwide HPI monthly report on 2^nd Sept created an uptrend for the pair whereas US Factory Orders monthly report on 2^nd Sept and Britain Construction PMI on 4th Sept favored downtrend for the pair.

Bank of England officials have warned that the recovery from the economic slump may extend. This recent news pressurizes against greenback and we expect a bearish trend for GBP/USD in the upcoming week.

The major economic events deciding the movement of the pair in the next week are US IBD/TIPP Economic Optimism at Sep 08, UK NIESR GDP Estimate, Unemployment Claims, Crude Oil Inventories at Sep 10, UK Manufacturing Production monthly report, and US Core CPI monthly report at Sep 11.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.94% higher than the previous week. Maintaining high at 1.3482 and low at 1.3175 showed a movement of 307 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 downside. A solid breakout below 1.3140 may open a clean path towards 1.3005 and may take a way down to 1.2834. Should 1.3447 prove to be unreliable resistance, the GBPUSD may raise upwards 1.3618 and 1.3753 respectively. In H4 chart, the breakout of the descending triangle pattern to the downside favors bearish expectation. Also to be noted shooting star formation exerts the expectation of downtrend for the pair.