Global macro overview for 10/05/2017:
Germany's Industrial Production data increased for the second consecutive month. According to the Federal Statistics Office, the production orders in Germany increased 1.0% in March, which was above market expectations of 0.7%. Nevertheless, the overall growth is still 2.5% lower than a month ago and the main reason behind this decrease is mainly due to weaker domestic demand, which plunged 3.8%. On the other hand, exports surged higher again with a 4.8% advance than a month ago. In conclusion, the data shows that the most powerful economy of the Eurozone still develops at a healthy pace and there are no signs of any significant slowdown just yet.
Let's now take a look at the EUR/GBP technical picture on the daily timeframe. The market is still trading below the golden trend line resistance and below all important moving averages as well. After a high at the level of 0.9268, no other higher high was made, so after the period of horizontal price action is gone, the next move should be to the downside. Nevertheless, if bears want to regain control over this market, then they must break out below the 0.8302 support in an impulsive fashion. Otherwise, the price will bounce and get back into the trading range.
