Global macro overview for 09/01/2017:
The recent comments of UK Prime Minister Theresa May for Sky News television indicated that Britain will leave the EU single market as she set out her determination to strike a post-Brexit trading deal that allows her to control immigration from the rest of Europe. Moreover, Mrs May said, she is not interested in any kind of a partial temporary deal with the Eurozone, but she wants a completely new deal with the Eurozone which will be utmost beneficial to the UK companies. She said the UK cannot keep 'bits' of the EU membership. In conclusion, a hard-Brexit option is still on the table according to Mrs May as the most important negotiations since the Eurozone beginning will start soon.
Let's now take a look at the GBP/USD technical picture in 4H time frame. After Mrs May comments, the market headed for support at the level of 1.2197 and broke out lower. The next important support is seen at the level of 1.2113 - 1.2080 and the level of 1.2197 will now act as technical resistance for the price. Please notice a growing bullish divergence between the price and momentum oscillator.
