Global macro analysis for 02/08/2016:
Another post-Brexit important economic indicator will be released later on today in the United Kingdom and this time, it is a Construction PMI. Yesterday's data from the UK regarding Manufacturing PMI has turned out to be worse than expected and worse than a month ago. Today's Construction PMI is being expected to be worse than a month ago as well (46.0 prior; 44.2 expected). If the number will be in level with expectations or worse than expectations, this might mean, the UK economy is slowing down more than expected after the Brexit as any reading below fifty points signals a contraction in the economy. In conclusion, this is quite important data for the UK which will clarify whether last month reading of 46 was a one-off coincidence or a decreasing six-month long trend will continue.
Let's now take a look at the GBP/USD technical picture at the 4H time frame.The market trades inside of the congestion zone between the levels of 1.3316 and 1.3058. So both sides of the market, bulls and bears, are struggling to get more control over this market, but on the higher time frames the bears are clearly winning. Moreover, there is a high possibility that the market is waiting for fundamental news to trigger another downside break out.
