The British pound slipped against most of the majors on the week, but ended on a strong note as a return of risk appetite helped sterling erase earlier losses.

For this upcoming week, broader risk trends will likely dictate GBP/USD price action as GBP traders face a light economic docket.

The spotlight falls on the Bank of England's release of an updated inflation report, which this time aroundwill take into account the government’s ambitious austerity budget that aims to trim the public deficit by a hefty 6.3 percent of GDP by 2014-15.

Government spending has been a key driver of the UK recovery, hinting that the significant retrenchment on the fiscal will call for monetary policy to remain at the current, accommodative setting for the time being to prevent a slide back into recession.

The consumer credit report and mortgage approvals highlight the upcoming week’s event risk as signs that banks continue to hoard cash and tighten lending standards will dim the outlook for future growth.

The British pound resumed its bullish trend after ending lower the week prior with the GBP/USD closing higher for the fifth time in the past six weeks.

The British pound held a narrow range as the Bank of England refrained from releasing a policy statement following its interest rate decision for July.

The Japanese yen may witness choppy price action to start next week as U.S. markets will be closed on Monday in observance of the U.S. Independence day holiday.

For this upcoming week, traders are sure to keep a close eye on further technical developments as the markets digest the recent fundamentals in Great Britain.

The upcoming Bank of England minutes will provide some insight into policy makers thought process but may lose their value considering that the budget release could significantly alter their thinking.