GBP/USD reversed directions last week, as the pair dropped about 170 points. The pair closed the week at 1.5615. This week’s highlights are the Average Earnings Index and Claimant Count Change. Here is an outlook on the major events moving the pound and an updated technical analysis for GBP/USD. In the UK, the pound took a hit after the MPC voted 8:1 against a rate hike, surprising the markets which had expected a 7:2 vote. As well, PMI data was weaker than expected. Over in the US, Nonfarm Payrolls were not as strong as expected, but the dollar was able to shrug off the lukewarm job numbers. [do action=”autoupdate” tag=”GBPUSDUpdate”/]GBP/USD graph with support and resistance lines on it. Click to enlarge: BRC Retail Sales Monitor: Monday, 23:01. This indicator measures the change in retail sales in BRC shops. The indicator posted a strong gain of 1.8% in June, compared to a flat 0.0% reading a month earlier. CB Leading Index: Tuesday, 13:30. This minor index slipped in May, posting a decline of 0.4%. This marked the index’s first decline in 2015, and the markets will be looking for better news in the June report. Average Earnings Index: Wednesday, 8:30. This key indicator has been gaining strength in recent readings, and posted an excellent gain of 3.2% in May, within expectations. The estimate for June stands at 2.8%. Claimant Count Change: Wednesday, 8:30. Claimant Count Change is one of the most important economic indicators, and an unexpected reading can have a significant impact on the movement of GBP/USD. The indicator surprised the markets in June, posting a gain in unemployed persons of 7.0 thousand. This was much worse than the forecast of -8.9 thousand. The markets are expecting a small gain in the July reading, with an estimate of 1.4 thousand. The unemployment rate edged higher in June, coming in at 5.6%. No change is expected in the July reading. RICS House Price Balance: Wednesday, 23:01. This indicator provides a snapshot of the level of activity in the UK housing sector. The indicator continues to improve, and registered a reading of 40% in June. The upswing is expected to continue in July, with a forecast of 42%. Construction Output: Friday, 8:30. This construction indicator has struggled, recording just one gain in the past five readings. The May reading came in at -1.3%, well below the estimate of 0.7%. The markets are expecting a strong turnaround for the June report, with an estimate of 2.4%. * All times are GMT GBP/USD Technical Analysis GBP/USD opened the week at 1.5621 and touched a high of 1.5651, as resistance held firm at 1.5682 (discussed last week). The pair then reversed directions, slipping to a low of 1.5421. The pair closed the week at 1.5452. Live chart of GBP/USD: [do action=”tradingviews” pair=”GBPUSD” interval=”60″/]Technical lines from top to bottom We begin with resistance at 1.6133, which was an important support level in the first half of 2014. 1.6006 is protecting the symbolic 1.60 level. 1.5909 has held firm as resistance since November 2013. 1.5769 is the next resistance line. 1.5682 held firm this week. It was an important cap in December 2014 and January 2015. 1.5590 continues to be busy. The line has switched to a resistance role as the pair recorded sharp losses. 1.5485 is a weak resistance line. 1.5341 is an immediate support line. It has held firm since mid-June. 1.5269 was an important support level in March. 1.5163 is the next support line. The final support line for now is 1.5026, protecting the symbolic 1.50 level. I am neutral on GBP/USD. The BOE surprised with its vote on a rate hike, and any rate increase in the UK is about a year away. With the US likely looking at a rate increase before the end of the year, the monetary divergence will probably continue to weigh on the pound. In our latest podcast, we ask: Will they or won’t they? We talk about the Fed and also falling oil and silver. Follow us on Stitcher. Further reading: For a broad view of all the week’s major events worldwide, read the USD outlook. For EUR/USD, check out the Euro to Dollar forecast. For the Japanese yen, read the USD/JPY forecast. For the kiwi, see the NZD/USD forecast. For the Australian dollar (Aussie), check out the AUD to USD forecast. For the Canadian dollar (loonie), check out the USD to CAD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher GBP USD ForecastMajorsMinorsWeekly Forex Forecasts share Read Next Time To Throw-In The Towel On AUD/USD Shorts? – Credit Yohay Elam 7 years GBP/USD reversed directions last week, as the pair dropped about 170 points. The pair closed the week at 1.5615. This week's highlights are the Average Earnings Index and Claimant Count Change. Here is an outlook on the major events moving the pound and an updated technical analysis for GBP/USD. In the UK, the pound took a hit after the MPC voted 8:1 against a rate hike, surprising the markets which had expected a 7:2 vote. As well, PMI data was weaker than expected. 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