Global macro overview for 03/01/2017:
All latest economic indicators from the United Kingdom are beating market expectations. There is now difference between the latest economic indicator, Manufacturing PMI, which is a monthly gauge of manufacturing activity, and a future outlook. It is comparable to the US ISM survey, similarly based on the opinions of executives in manufacturing companies. The index released this morning came in at 56.1, better than expected figure of 53.3, and better than 53.1 from a month ago. In conclusion, despite all pessimistic forecasts regarding the UK political and economic situation after Brexit, the data released after the referendum are still better than analysts expectations.
Let's now take a look at the GPB/USD technical picture in the 4H time frame. The market is trading around the mid-term trend line (dashed black) and it looks like after the level of 1.2387 rejection, the bears are in charge of the market. The next support is seen at the level of 1.2200, which would also mean that the price has broken out of the channel line and it might be heading even lower towards the level of 1.2080.
