GBP/USD Weekly Analysis

GBP/USD

Fundamentals
This upcoming week is an important week for the Pound-Dollar. Interest rates are expected to stay the same for the dollar on Wednesday, but an expected cut of 25 basis points for the pound on Thursday. However, economic data concerning the jobs reports and business confidence from previous weeks has been a positive outlook on the pound. Moreover, concern looms as Brexit will be taking place on 31st January. It will be expected to be priced in the market at that time, so less volatility will be present, but, it will be good to keep an eye on key news releases that could potentially move the market.

Technicals
We've seen the pound head north when the conservatives won. This will lessons the political instability, but how long will this last? Moreover, to the current price action on Friday we see that there has been plenty of bearish moves and there may come plenty of bearish moves for the week ahead.

SMA 50 crossover
SMA100 crossover
SMA 200 crossover

The trend is bearish but has yet still to be oversold. The prices tried to break the SMA for a new high but didn't have enough momentum to break them, the pound weakened and continued south.

Coronavirus will be lingering in the background of the markets this coming week, the dollar may be effected.

Conclusion
The first days of the week is likely to be bearish unless an unforeseen event causes the market to turn north again. Keep your eyes peeled for important news releases and rumours. This week will be volatile.