Global macro overview for 26/01/2017:
The Preliminary GDP data from the United Kingdom will be the main fundamental event for the day. An indicator for broad overall growth in the United Kingdom will be released at 09:30 am GMT today and the market analysts project a slight decrease from 0.6% to 0.5% on a quarterly basis. Please notice, that the first reading only includes about 30% of all relevant data, so traders should not make any hasty conclusions. The overall situation of the British economy in the post-Brexit environment is not that bad as many market analysts predicted and the consumer sentiment is still positive and steady. It all might change if the negotiations with the European Union will go wrong, but so far the outlook is better than many economists expected.
Let's now take a look at the EUR/GBP technical picture in the daily time frame. The market is trading near the key support at the level of 0.8446, just below the 50 and 100 periods moving average. The lower low made at the level of 0.8855 might suggest the market is about to break lower and even the lower low at the level of 0.8302 might get violated before the uptrend resumes.
