Global macro overview for 29/07/2016:
The bunch of data from Eurozone this morning had revealed that the Eurozone flash Gross Domestic Product for the second quarter was in line with the expectations as it was released at the level of 0.3%q/q and 1.6%y/y. The unemployment rate for the Eurozone is steady as well at the level of 10.1% with record low German unemployment rate at the level of 6.1%. The Consumer Price Index (CPI) had edged slightly higher from 0.1% a month ago to 0.2% for the reported month. In conclusion, the relatively good data did not wipe out the uncertainty ahead of the Brexit referendum and the unresolved Euro crisis, especially relating to banks, Greece and elections in Spain.
Let's now take a look at the EUR/GBP technical picture at the daily time frame. After the swing top at the level of 0.8629 the market reversed and it remains in the corrective cycle. The price is still trading above all of the moving averages and the near term outlook is bullish. The next support is seen at the level of 0.8249 and the next resistnace is seen at the level of 0.8469.
