Global macro overview for 20/05/2016:
Another set of data had been released yesterday from the UK and this time it was retail sales with auto fuel. The figures were better than expected as the sales surged 1.3% vs. 0.6% expected and -0.5% prior. Moreover, the Office for National Statistics revealed that on the year-to-year basis the retail sales climbed 4.3%. In conclusion, the data suggests that after a sluggish start of the year, the British economy might be heading towards a mild economic growth in the second quarter. Nevertheless, the shopping spree will not hide the uncertainty surrounding the UK's future in the EU, with the nation's referendum on the matter due on June 23.
Let us now take a look at the GBP/USD technical picture after the data release. The bulls have managed to retrace the recent drop almost to the 78% Fibo at the level of 1.4674 and now the market is trading at the level of 1.4546 which is another technical support. The low at the level of 1.4330 looks like another higher low in the sequence, but no higher high has been made yet, so the labeling is only temporary. As long as it is not violated, bulls are still in control over this market.
