Global macro overview for 02/12/2016:
The manufacturing PMI data from the UK were released yesterday and they fell short of the market expectations. The index unexpectedly fell to 53.4 in November, while market participants expected the score of 54.4 points after the previous 52.2 figure. Nevertheless, the rate of expansion is still "solid" according to IHS Markit. This was the second month of decline in the UK's manufacturing sector, but the index still remains above the 50 mark which separates contraction from expansion. In conclusion, the UK economy was widely expected to experience a strong shock and decline significantly after the Brexit, but confidence quickly recovered to the pre-referendum levels and has been improving so far.
Let's now take a look at the GBP/USD technical picture on the 4H time frame. Bulls managed to break above the technical resistance at the level of 1.2532 which turned into support and tested the next technical resistance at 1.2676. Currently, the market is reversing slightly, but the support at the level of 1.2532 has not been violated so far, as traders are expecting more news from US this afternoon.
