Global macro overview for 04/07/2016:
The UK estimate GDP data were released last week. According to the Office for National Statistics, the third estimate of the UK's first quarter GDP showed that the economy expanded 0.4% on a quarterly base, unrevised from the previous forecast and in line with market expectations. The main indicator for the slowdown was the weaker business investment and growing trade deficit. Moreover, the annual GDP growth was also unrevised at 2%. In conclusion, the consequences of Brexit are not even slightly priced in yet, so investors might expect the GDP to be even worse that the recently estimated data.
Let's now take a look at the GBP/USD technical picture in the daily time frame. The market in fully controlled by the bear camp and the recent technical resistance at the level of 1.3500 is now the most important level for them to keep their dominance. Moreover, the price is clearly trading below the 55, 100 and 200 DMA, which supports the bearish outlook.
