Global macro overview for 19/04/2017

Global macro overview for 19/04/2017:

Instead of early parliamentary elections in Italy, there will be general elections in the UK. Theresa May uses a favorable moment to remodel the parliament and have greater comfort in governance. Currently, 55% of the Brits positively perceive the Brexit, the Conservative Party has a gigantic, reaching over 20% points predominance over the Labor Party in the pools. The economy is still in good shape, which in a broader perspective will be difficult to maintain.

Let’s now take a look at the EUR/GBP technical picture at the daily time frame. The outcome of the surprising decision of Prime Minister May is a giant strengthening of the pound – investors massively overlap long positions. The EUR/GBP exchange rate has moved below the 200 and 100 -session moving average. The price is now trading just above the critical support zone around the level of 0.8304 in oversold market conditions. The lower line of the parallel golden channel had provided some dynamic support for the price, but in the longer term, the bias is still to the downside.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Global macro overview for 19/04/2017