Global macro overview for 04/01/2017:
Another set of data from the United Kingdom has beaten the market expectations as the activity level of purchasing managers in the construction industry increased again. The UK Construction PMI came in at 54.2 in December, while market participants expected a slight decrease to 52.6 points after a rise to 52.8 a month ago. Construction has been one of the best sectors in the recovery from 2013. Although it had a soft 2016, there have been signs of optimism since the Brexit vote. In conclusion, markets cheered another good news on the UK economy after yesterday’s PMI Manufacturing data, that is also better than expected.
Let’s now take a look at the EUR/GBP technical picture in the daily time frame. We can clearly see the golden trend line is preventing bulls to rally higher as every attempt to break through was a failure. Currently, the market is trading below the 55 and 100 daily moving average, but still above the 200 moving average. A higher low might have been made at the level of 0.8300, but the trend is still bullish in the mid-term. The next support is seen at the level of 0.8333 and the next resistnace is seen at the level of 0.8667.
The material has been provided by InstaForex Company – www.instaforex.com