Global macro overview for 25/11/2016:
The second estimate of the UK GDP has been released this morning and it was in line with expectations. The third quarter GDP was estimated at the level of 0.5% on a monthly basis and 2.3% on yearly basis. The revised prints confirmed the flash estimates. Moreover, the Business Investment data for the third quarter beat the market expectations of a -0.2% decline after 1.0% increase last time. This time the data were released at the level of 0.9%, almost the same as the prior reading. In conclusion, since June 2016, the UK economy has revealed robust performance with economic indicators from various sectors better than expected, despite the fact that the pound sterling has plunged 16 percent over that period. The UK economy has weathered the post-Brexit period fairly well, but we need to remember there are serious concerns that the actual exit from the European Union will take a heavy toll on the British economy later.
Let's now take a look at the GBP/USD technical picture in the 4H time frame. The market has bounced from the major support at the level of 1.2334, but bulls did not manage to break out above the technical resistance at the level of 1.2511 and currently the market is trading in a congestion zone between those two levels. Market participants should now wait for a breakout in either direction.
