Global macro overview for 08/12/2016:
The British industrial production data was released yesterday and it disappointed market participants. According to the Office for National Statistics, industrial output declined 1.3% in November, following September's drop of 0.4% and falling behind the 0.2% rise forecast. That was the largest decline since September 2012; the main reason behind this decrease was a temporary shutdown of the UK's largest oilfield. Moreover, manufacturing production decreased -0.9%, while the market participants expected the 0.2% increase. In conclusion, the series of downbeat data does not invalidate the better-than-expected performance since the Brexit vote. Besides, the GDP is still indicating an expansion of 2.2% in 2016 and 1.4% in 2017.
Let's now take a look at the GBP/USD technical picture on the 4H time frame. The market is clearly trading in a horizontal way between the technical support at the level of 1.2580 and technical resistance at the level of 1.2772. Only a clear breakout above the technical resistance opens the way to test the 61%Fibo at the level of 1.2903.
