Global macro overview for 02/09/2016:
The Construction PMI data from the UK beat market expectations and caused a small rally on all pound pairs. Market participants expected the data to be just slightly better than the last month release of 45.9, so they expected 46.6. The released figure came in at 49.2, so the rebound among purchasing managers in the UK construction sector from the post-Brexit shock was rather impressive. Nevertheless, the level of 50 that separates expansion from deterioration hasn't been surpassed yet. In conclusion, the last time the Construction PMI was above 50 level was December 2015, so despite a good release, this is the 9th month in a row when this indicator is still inside a deterioration zone.
Let's now take a look at the GBP/USD technical picture in the daily time frame. The market is still trading in a horizontal congestion zone between the levels of 1.2801 and 1.3536. After the good data yesterday, bulls have managed to rally the price up to the level of 55 DMA at 1.3327, but so far there is no sign of a rally continuation yet. The next support is seen at the level of 1.3062.
