Fundamental view:

The British pound has initially pulled back just a bit during the trading sessions that make up the week, only to turn around and sliced through the 1.30 level. The question of who will be the next president remains in the front –  The question remains open after long days of vote counting. However, Democratic nominee Joe Biden is leading against incumbent President Donald Trump in critical swing states – Nevada, Arizona, Pennsylvania and Georgia.

Britain Final Manufacturing PMI on 2^nd November, US Wards Total Vehicle Sales on 3^rd November and US Unemployment Claims on 5^th November created uptrend for the pair whereas US ISM Manufacturing PMI on 2^nd November and US Unemployment Rate & Consumer Credit monthly report creates bearish trend for the pair.

The major economic events deciding the movement of the pair in the next week are BoE Governor Bailey Speech at Nov 09, US JOLTS Job Openings at Nov 10, OPEC Monthly Oil Market Report, Fed Governor Quarles Speech at Nov 11, UK GDP quarterly report, US Initial Jobless Claims at Nov 12, and US PPI monthly report at Nov 13.

GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.75% higher than the previous week. Maintaining high at 1.3177 and low at 1.2854 showed a movement of 323 pips.

In the upcoming week we expect GBP/USD to show a bullish trend.  The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.3273 may open a clean path towards 1.3386 and may take a way up to 1.3596. Should 1.2950 prove to be unreliable support, the GBPUSD may sink downwards 1.2741 and 1.2627 respectively. Chart formation of Inverse head and shoulders pattern in H4 chart favors prospects of a bullish trend. Bullish engulfing pattern formation escalates the expectation for a bullish trend.