Global macro overview for 24/05/2016:
Bank of England Governor Mark Carney recent speech regarding the Brexit scenario turned out to be positive for the pound in the short term. As Carney said, all MPCs and FPCs share the view on potential impact of Brexit and it is still the largest domestic risk for the British economy. This is why, the campaign to keep Britain in the European Union is gaining strength as the latest poll revealed that older voters are now switching sides. Nevertheless, the national referendum is due on 23rd of June and all investors are looking forward for the outcome as uncertainty is growing.
Let's now take a look at the GBP/USD technical picture in 4H time frame. The recent rally has been capped almost at the 78% Fibo at the level of 1.4674 and from now on this level is labeled as a lower high. Bulls and bears are still not sure what direction should this pair move, so the current technical picture is a classic range-bound market. The most important resistance is at the level of 1.4770 and the most important support at the level of 1.4330.
