Global macro overview for 21/04/2016:
The Bank of England's Governor Mark Carney has testified to lawmakers in the House of Lords yesterday and he expressed deep concerns about the threats the UK economy might face if Brexit comes true. In his opinion, a vote of support for Brexit will cause "an extended period of uncertainty about the economic outlook" in the UK. It means economic growth, investments and trade balance might get hurt as Brexit will undermine asset prices and credit supply. In conclusion, Carney has described Brexit as the main domestic risk to Britain's financial stability and economic growth.
Let's now take a look at the GBP/USD technical picture on the 4H time frame. The golden trend line has been tested from the downside and the bulls were rejected from these price levels. The support at the level of 1.4337 has been broken and now the market is trading below it. Neither bulls nor bears are in control over this market as both parties are fighting for dominance. The next support is seen at the level of 1.4241.
