Currency Analyst since 2010

GBP/USD: outlook for Aug. 29 - Sep. 4

GBP/USD ended last week in the positive territory, but failed to stay at highs.

On the one hand, British pound was supported amid optimism that the consequences of the Brexit decision may not be as severe as first feared, after a report showed that UK consumer confidence rose the most in more than 3 years. On the other hand, hawkish comments from the Federal Reserve made the US dollar strengthen - reminding about divergence in monetary policy of the Fed and the Bank of England.

Technically GBP/USD turned lower from resistance line, which has been in place since the end of June and has potential to test support at 1.3020 and, perhaps, even at 1.29 in case of strong US statistics. Resistance is at 1.3180 and 1.3260.

Important events in British economic calendar include net lending to individuals on Tuesday, manufacturing PMI on Thursday and Construction PMI on Friday.


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