Global macro overview for 12/10/2016:
Interesting remarks from Sir Jon Cunliffe, Bank of England Deputy Governor has hit the mass media while he was appearing at the inquiry by the upper House of Lords into the fallout of Brexit on financial services. Cunliffe said, that BoE needs to make sure that banks continue to focus on non-Brexit risks as there is still a great uncertainty about the extent to which financial firms will leave the Britain. Moreover, he said that BoE continues to prepare contingency planning with other central banks in order to react accordingly. In conclusion, standard risk measures are now being slowly prepared and implemented as the uncertainty at the financial market is growing. The so-called "hard Brexit" might be scheduled as soon as March 2017.
Let's now take a look at the GBP/USD technical picture in the hourly time frame after the notorious flash-crash last week. The price is still range-bounded between the levels of 1.2478 - 1.2028. The visible bullish divergence might be the first sign of an ongoing corrective rally, but the bias remains bearish.
