Global macro overview for 11/10/2018

The Wednesday session was quite calm in terms of significant macroeconomic events. One of the most important publications was undoubtedly the revised data on the dynamics of the British Gross Domestic Product in September 2018. The latest Office for National Statistics data (UK statistics office) indicate that British GDP was 0.0% in September, compared to an average forecast by economists at 0.1% and 0.4% in August. This means that the market value of all manufactured goods and services remained at its current level. Still, out of the main currency basket, the pound sterling gained the most anyway.

The latest news related to the Brexit agreement may be responsible for strengthening the pound. British and EU diplomats said that intense negotiations over the next five days could lead to a temporary agreement on this matter. However, although this is a positive change, many issues remain unresolved.

Let's now take a look at the GBP/USD technical picture at the H4 time frame chart after the data were published. The pair is still in the uptrend as it approaches the level of 1.3292, which is the next target for bulls. In the meantime, the price has managed to break through the technical resistance zone between the levels of 1.3191 - 1.3217 with a local high at the level of 1.3244. This zone will now act as a support for the price. Please notice, there is no divergence between the price and momentum just yet, but the market conditions are overbought at the time frame.

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