Forex - GBP/USD weekly outlook: July 28 - August 1

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Investing.com - The pound edged down to one month lows against the broadly stronger dollar on Friday as upbeat U.S. data and heightened geopolitical tensions underpinned demand for the greenback.

GBP/USD edged down 0.06% to 1.6975 late Friday, the lowest since June 25. For the week, the pair lost 0.66%.

Cable is likely to find support at around the 1.6925 level and resistance at 1.7050.

In recent sessions, sterling has backed off the almost six-year highs of 1.7190 set on July 15 as expectations for a rate hike by the Bank of England before then end of the year waned.

The greenback was boosted as better than expected data on durable goods orders for June added to signs that the U.S. economy is improving.

The Commerce Department reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%. Durable goods orders fell by 1.0% in May.

Demand for the dollar has been underpinned since Federal Reserve Chair Janet Yellen indicated earlier this month that U.S. interest rates could rise sooner if the recovery in the labor market continues.

Investor demand for safe haven assets was also boosted by geopolitical concerns as tensions between the West and Russia remained high. The European Union imposed a fresh round of sanctions against Russia on Friday, in protest over Russia's involvement in the crisis in east Ukraine.

Earlier Friday, official data confirmed that the U.K. economy grew 0.8% in the second quarter of 2014 and expanded by 3.1% on a year-over-year basis.

Elsewhere, sterling gained ground against the broadly weaker euro, with EUR/GBP sliding 0.18% to 0.7910, not far from Wednesday's 22-month low of 0.7873.

The single currency weakened broadly on Friday as disappointing German economic data underlined concerns over the diverging monetary policy path between the European Central Bank and other central banks.

In the week ahead investors will be focusing on U.S. data on second-quarter gross domestic product and an interest rate decision by the Federal Reserve on Wednesday, while Friday's nonfarm payrolls report for July will also be closely watched.

The U.K. is to release data on manufacturing sector activity on Friday.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, July 28

The U.S. is to release data on pending home sales.

Tuesday, July 29

The U.K. is to release data on net lending.

Later Tuesday, the U.S. is to publish reports on house price inflation and consumer confidence.

Wednesday, July 30

The U.S. is to release the ADP report on private sector job creation, which leads the government's nonfarm payrolls report by two days. The U.S. is also to publish revised data on second quarter growth.

Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement.

Thursday, July 31

The U.K. is to produce private sector data on house price inflation.

The U.S. is to release the weekly report on initial jobless claims, as well as data on manufacturing activity in the Chicago area.

Friday, August 1

The U.K. is to release data on manufacturing activity.

The U.S. is to round up the week with what will be closely watched government data on nonfarm payrolls and the unemployment rate, while the Institute of Supply Management is to release data on manufacturing activity.

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This article appears in: Investing , Forex and Currencies

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