Global macro overview for 05/04/2016:
The Construction PMI, which is the key indicator of a household activity in UK, remained steady in March at the level of 54.2. This figure was 0.1 point lower than the market consensus, but still unchanged from February's 10-month low. The residential housing sector has recorded the weakest pace of growth since January 2013, despite efforts made by the government to spur more housebuilding. Nevertheless, 51% of survey respondents said they anticipate an increase in business activity at their units over the next 12 months, while only 11% forecast a slowdown. In conclusion, the housing market is still showing high level of performance and it can still contribute substantially to the next GDP reading (revised up to 0.6% from a previous estimate of 0.5%).
Let's now take a look at the GBP/USD technical picture in the 4H time frame. We can see the recent rejection of the level of 1.4324 (now resistance) and a downward move towards the support at the level of 1.4194. The market is clearly trading inside the triangle pattern and as long as the golden trend line is not clearly violated, the bulls and bears will fight to take the control over this market. The long term trend remains bearish.
