Global macro overview for 12/09/2016:
According to the UK Office for National Statistics,the country's trade deficit narrowed slightly less than market participants expected in July. The trade gap decreased to 4.5 billion pounds in July, compared to the previous month's upwardly revised gap of 5.6 billion pounds, whereas market analysts expected the trade deficit to narrow to 4.1 billion pounds in the reported month. In this situation, the economists must take into the account, that the British Pound has substantially dropped after the Brexit referendum, but the ONS stated, that it is still too early to fully assess the impact of Brexit. In conclusion, the narrowing of the Britain's trade deficit might suggest the economy will still expand in third quarter, but the risks to the downside are still present.
Let's now take a look at the GBP/USD technical picture in the 4H time frame. The market is still trading above all of the moving averages, but still no meaningfull breakout has been made so far. The next support is seen at the level of 1.3062 and the next resistance is seen at the level of 1.3536.
