Global macro overview for 09/03/2016:
Bank of England governor Marc Carney enraged Brexit-ers in his testimony before the Treasury select committee on Tuesday. He called a transition out of the EU the biggest domestic risk to financial stability. He mused that the UK assets could be perceived by foreign investors as more risky. And he added that some parts of the financial services industry could relocate. Meanwhile, economists pushed back their bets on when the BoE would start to hike rates to early 2017, due to a weaker global economy and stubbornly low inflation. In conclusion, the outcome of the British national referendum in June is getting to be hotter and hotter. The outcome is unknown yet, but it will be the most important fundamental event of the year with global consequences.
Let's now take a look at the technical picture of GBP/USD pair in the H4 time frame. The market has broken above the 61%Fibo level and the technical resistance at the level of 1.4234, but it still trades below the brown trend line. The nature of the rebounded from the local low at the level of 1.3839 looks corrective and as long as the gap is hasn't been filled the bear remain in control of the market.