Global macro overview for 28/08/2015:
The UK Second Estimate of GDP has come at the level of 0.7% q/q (2.6% y/y) in line with analysts' expectations, unrevised from the previously published estimate.The UK exports posted the largest increase rising by 3.9 percent from the previous three months, which is the biggest gain in four years. This kind of good data might encourage the Bank of England to raise the interest rates, as the British economic growth rate is improving with personal incomes increasing as well. However, despite the governor Mark Carney's remarks about tightening monetary policy, timing for the long anticipated interest rate hike is still unknown, as the weaker global outlook prevents the BoE from making the decision so far.
Technical picture for the GBP/USD pair is favoring bears now as after the recent fake breakout above the resistance level of 1.5790, the currency is movind downwards now, trading at the level of 1.15403. The next support is seen at the level of 1.5330 and the resistance is found at the level of 1.5425.
The material has been provided by InstaForex Company – www.instaforex.com