Global macro overview for 15/09/2016:
Another set of important economic data from the United Kingdom is scheduled for release today at 11:00am GMT. This time, market participants will find out whether the Bank of England will change the interest rate (0.25% vs. 0.25% prior) and asset purchase facility (435B vs. 435B prior). Moreover, it will be worth keeping an eye on MPC official bank rate votes (0-9-0 vs. 0-0-9 prior) and asset purchase facility votes (6-0-3 vs. 0-0-9 prior). It will be one of the most interesting events this month as BoE minutes might provide clues for further key policy directions. It is worth mentioning that BoE has held the interest rates at 0.5% for seven and a half years and there has been no increase in quantitative easing since July 2012. As we know, it all changed since Brexit and the Monetary Policy Committee was forced to announce further stimulus measures at the meeting in August. In conclusion, this event might be a big market mover, surprising investors.
Let's now take a look at the GBP/USD technical picture in the 4H time frame. The golden trend line was tested and higher prices were rejected so far. Currently, the market is trading around 100 periods moving average and awaits the interest rate decision. The next support is seen at the level of 1.3159 - 1.1337 and the next resistance is seen at the level of 1.3280.
