Global macro overview for 17/08/2016:
The pre-Brexit July UK labour market report in the form of a Claimant Count Change, Unemployment Rate and Average Earnings Index have been just published this morning. The results are pretty much in line with expectations. Nevertheless, the UK Claimant Count Change decreased from 0.9k to -8.6k despite the market expectations of +9.5k new unemployment claims. The June ILO unemployment rate was logged at the level of 4.9% vs 4.9% expected and 4.9% previously. The June average weekly earnings was at the level of 2.4% vs 2.4% expected and 2.3% in May. In conclusion, the data did not discourage markets. Moreover, the number of unemployment claims was better than expected. Nevertheless, it does not improve rather negative UK economical outlook as all the data were collected before the Brexit vote.
Let's now take a look at the GBP/USD technical picture in 4H time frame. The market is still trading inside the horizontal congestion zone between the levels of 1.3535 - 1.2785. The higher time frame trend is still pointing down, but so far no decisive breakout above any of the important levels has been made. The next support is seen at the level of 1.2850 and the next resistance at the level of 1.3061.
