Global macro overview for 10/11/2016:
Despite the post-Brexit uncertainty, the official data revealed on Wednesday by the UK Office for National Statistics showed that trade deficit narrowed in the Q3. The total British trade deficit dropped to 11.0 billion pounds in the Q3, following the preceding quarter's gap of 12.7 billion pounds. Moreover, despite the visible trade balance's decrease to 33.2 billion pounds for the whole Q3, goods trade deficit jumped to 12.7 billion pounds. The main catalyst for the grow in exports is the weak pound, which has dropped about 18% against the US dollar since Brexit. In conclusion, further fall in the value of the pound will result in the larger trade gap.
Let us now take a look at the EUR/GBP technical picture on the daily time frame. Bears have managed to break out below the golden trend line and now the market is trading just below the first technical support at the level of 0.8816. Please notice that the negative divergence between the price and the momentum oscillator is helping bears test the lower levels of the market. The next support is seen at the level of 0.8723.
