Global macro overview for 16/05/2016:
The bank holiday's across the Europe will means the light trading conditions today, but going forward there are very interesting fundamental data releases later on. The most important one will be the FOMC meeting minutes due on Wednesday at 06:00pm GMT, so traders and investors will have a chance to confront the April meeting remarks and get more insight into the where exactly the Federal Reserve lies on the interest rates tightening process. The next important ones will be a series of data from UK: Consumer Price Index on Tuesday at 08:30am GMT, Claimant Count Change on Wednesday at 08:30am GMT and Retail Sales on Thursday, again at 08:30am GMT. Moreover, the debate of a possible Brexit is now getting more and more important, so were going to see a lot more fight from the anti-E.U. camp in the coming weeks. In conclusion, despite the slow start it looks like interesting week ahead on financial markets.
Let's now take a look at the GBP/USD technical picture in the 4H time frame. The 50% Fibo level has been violated and bears have manages to push the prices below the important support at the level of 1.4374. Currently, this level is being tested from below and in case of a failure to break out higher, the next important support at the level of 1.4298 will be eyed.