Global macro overview for 03/10/2016:
Interesting news has hit the mass media late Sunday afternoon: the British Prime Minister Theresa May announced that at the beginning of 2017 Britain will start the procedure for leaving the European Union. The David Cameron's successor ruled out the possibility of holding an early parliamentary election before 2020.According to Theresa May, an earlier election could cause unnecessary "instability". Moreover, she repeated that Brexit will be carried out without undue delay, which means she does not intend to wait until the autumn of 2017 and the German parliamentary elections. Experts have suggested that the possible change of the political system in Germany could help the UK in negotiations with the EU.
Let us now take a look at the GBP/USD technical picture on the H4 time frame after the UK Prime Minister remarks. As we can see the market has made a new local low at the level of 1.2824 (at the time of writing), all support levels had been violated and currently bears have the control over the market. The next important support is seen at the level of 1.2801, which is a post-Brexit low.
