Global macro overview for 19/07/2016:
The ZEW Economic Sentiment data for eurozone was released and it was worse than expectations. According to the Center for European Economic Research, the experts evaluated the economy was worse than the last time. The Economic Sentiment index entered a negative territory printing -6.8 points vs. 8.2 points expected and 19.2 points prior. Moreover, the Current Situation index dipped below the fifty mark with only 49.8 points released (vs. 51.8 expected and 54.5 prior). The main reason for this outburst of negative sentiment is, of course, Brexit and special concerns about exports and European banking/financial system. In conclusion, the ZEW data might be the first sign of deterioration in the eurozone economy again.
Let's now take a look at the EUR/GBP technical picture in the daily time frame. The market is still trading above all moving averages and bulls are in control over this market. Moreover, another higher low might just have been made at the level of 0.8249 and this level will now act as a technical support. The nearest resistance is seen at the level of 0.8469.
