After the shocker squeeze in the economy, the pound is up for a busy week, with fresh indicators of the economy. Here’s an outlook for the British events, and an updated technical analysis for GBP/USD. The pound was hit both by the squeeze in the economy and the Egyptian crisis, which threatens the global recovery and triggers risk aversive trading. Only the hopes for a rate hike helped it. GBP/USD chart with support and resistance lines on it. Click to enlarge: GBP USD Chart - January 31 - Feb. 4 - Click to enlarge Halifax HPI: Publication time unknown at the moment. This is considered one of the most accurate house price indices, due to the wide range of data – internal mortgage data held by HBOS. After a disappointing drop of 1.3%, a small fall of 0.1% is now predicted. A rise will boost the pound, but it isn’t likely. Nationwide HPI: Tuesday, 7:00. While this data is less accurate, it has an impact due to its freshness. Contrary to the previous figure, this one surprised with a rise in home prices – 0.4%. A drop of 0.3% is now expected. Manufacturing PMI: Tuesday, 9:30. Manufacturing is holding the UK economy intact. The recent months saw big surprises in this sector. The score reached 58.3 points, meaning strong expansion. It’s now expected to ease to 58.1 points. Net Lending to Individuals: Tuesday, 9:30. Though somewhat overshadowed by manufacturing, this indicator still has an impact. More lending means more activity, but we saw a disappointing 0.7 billion number last month. Another squeeze is expected now – 0.6 billion. Construction PMI: Wednesday, 9:30. Contrary to manufacturing, the construction sector is dragging the economy down. The indicator dropped to 49.1 points last month, under the 50 line that separates expansion and contraction. A small correction to 49.7 is expected now. A rise above 50 will aid the pound. Services PMI: Thursday, 9:30. The last PMI of the week is the most important one. The services sector also fell to economic squeeze last month, falling to 49.7 points. A correction to 51.1 points is expected now. If this is realized and last month’s number is revised above 50, it will be a big relief, but it isn’t likely. * All times are GMT. GBP/USD Technical Analysis After failing to settle above the round number of 1.60 (mentioned last week), GBP/USD fell down to 1.5750, before recovering and closing around 1.5860. Looking down, 1.5840 is now only a weak line of support, unlikely to hold for a long time. Below, 1.5720, turns into a stronger line, that worked in the past week and also beforehand. Even more important support is found at 1.5650, which was the top border of wide range that GBP/USD traded in until the recent breakout. It’s followed by 1.5480, which is a minor line. Further significant support appears at 1.5350, which was the bottom border or the wide range. It hasn’t been broken for a long time. 1.5230 capped the pair in the beginning of the summer, and is now has a different role. It’s followed by 1.5120, which already worked as support, and is a minor line now. Looking up, 1.5910 is a minor line of resistance, before the main dish – 1.60, which proved yet again that it’s not only a round number. It was also a peak in August. Higher, 1.6107, the swing high, is the next line of resistance after being a swing peak. Above, 1.63, the highest level in a year and serves as significant resistance. An old peak at 1.6450 is the next line, and it’s followed by 1.67, but these lines are still far now. I remain bearish on GBP/USD The shocking contraction, joined by risk aversion due to the Egyptian crisis, are likely to send the pair down. High inflation just complicates the situation, but it won’t help the pound. Reality bites. 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/Dollar forecast. For the Japanese yen, read the USD/JPY forecast. For GBP/USD (cable), look into the British Pound forecast. For the Australian dollar (Aussie), check out the AUD to USD forecast. For the New Zealand dollar (kiwi), read the NZD forecast. For USD/CAD (loonie), check out the Canadian dollar. Yohay Yohay View All Post By Yohay GBP USD ForecastMajors share Read Next Egyptian Army Against Mubarak Yohay Elam 11 years After the shocker squeeze in the economy, the pound is up for a busy week, with fresh indicators of the economy. Here's an outlook for the British events, and an updated technical analysis for GBP/USD. The pound was hit both by the squeeze in the economy and the Egyptian crisis, which threatens the global recovery and triggers risk aversive trading. Only the hopes for a rate hike helped it. GBP/USD chart with support and resistance lines on it. Click to enlarge: [caption id="attachment_14946" align="alignright" width="400" caption="GBP USD Chart - January 31 - Feb. 4 - Click to enlarge"][/caption] Halifax HPI:… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.