Global macro overview for 05/02/2018

In the beginning of the week, market attention will be focused on central bank meetings. On Tuesday, the decision on the level of money costs will be taken by the Reserve Bank of Australia (RBA), which, according to the market consensus, should maintain the main interest rate at the level of 1.5%. On Wednesday, the decision on interest rates will be taken by Reserve Bank of New Zealand, but you should not expect any surprise here either. On Thursday, we will find out more about the outlook for the British economy, as apart from the Bank of England's decision regarding monetary policy parameters, the bank's quarterly report on inflation will also be published. In connection with the above, the central theme this week will be the monetary policy of central banks, as well as the comments of decision-makers appearing in this area.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market has broken below the technical support at the level of 1.4081 and now is heading towards the nearest support at the level of 1.4029 and 1.3975. The downward momentum is strong as confirmed by the RSI indicator. Stochastic indicator is reversing from the overbought zones as well.


The material has been provided by InstaForex Company -