13.05.201610:22 Forex Analysis & Reviews: Global macro overview for 13/05/2016

Global macro overview for 13/05/2016:

Yesterday, the Bank of England left the interest rate unchanged at the level of 0,50%, and the asset facility purchases was kept at the level of 375 bln pounds. Moreover, both vote grids for interest rates and asset purchase facility were unchanged in their structure, so the pattern of 0-0-9 with no dissidents remains valid. Nevertheless, the interesting comments from BoE Governor Mark Carney are worth to notice. He clearly warned that if British people vote to leave the EU, Britain's economy would slow sharply and could even slide into recession. Moreover, the pound could decline sharply, unemployment would probably climb up, consumers would delay spending, and investors would postpone their decisions to invest. In conclusion, the grim picture has been drawn for the Britons in case of Brexit, but the recent pools reveal that there is almost equal number of supporters and opponents whereas there are plenty of people who haven't decided yet. All in all, the 23rd of June will be definitely one of the most important days in Britain's modern history.

Let's now take a look at the GBP/USD technical picture in the 4H time frame after the Thursday data publication. The important technician support at the level of 1.4374 is still not violated, but any rally is very short-lived and reversed. No higher highs are made so far and it looks like bulls are growing stronger over the time. The next support is seen at the level of 1.4298.