Global macro overview for 05/09/2018

During his yesterday's speech, Mark Carney signaled that he was ready to extend his term of office as the Governor of the Bank of England to guarantee a peaceful Brexit. He announced that he and the chancellor had discussed the issue and that the final decision would be made in due time. He assured, however, that there are many qualified candidates for his position. He also said that the UK Monetary Policy Committee has no forecasts for a possible breakthrough on Brexit. He added that leaving the European Union without a settlement could cause a significant drop in the value of the pound. GBP did not react with a significant move to the speech of the president of BoE.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market has broken through the blue trendline support around the level of 1.2935 and made a local low at the level of 1.2828. The low of this down move was made just at the 61% Fibo at the level of 1.2807, so now the bulls might try to take the control over the market again. In order to do this, they have to rally towards the level of 1.2956 first and then toward the local high at the level of 1.3044. Otherwise, the bears will push the price lower towards the next technical support at the level of 1.2723.

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