Global macro overview for 21/03/2016:
For this week there are still some important pieces of economic data that is due out, with a particular focus on the UK fundamental data release. This week should be more quiet mainly because of the upcoming Easter Bank Holiday. Nevertheless, the inflation data on Tuesday and the retail sales figures on Thursday will be watched closely by the Bank of England mainly due to the 2% inflation projection level for 2016. In conclusion, the weak data might initiate the assistance program from the BoE, despite the recent remarks made by Mark Carney. He said that the next central bank move will be more likely to increase the interest rate than to decrease it.
Let's now take a look at the technical picture of the GBP/USD pair at the daily time frame. The market has broken through the golden trend line and currently it is testing it. Moreover, it is trading just below the important support at the level of 1.4438 so the bulls are in complete control overt this market. Only a sustained break out below the level of 1.4051 would change the situation in favor for bears.