Global macro overview for 19/07/2016:
The inflation data from the United Kingdom was released today and it mostly meet the market expectations. The consumer price index was unchanged at the level of 0,2% m/m, just as per market expectations, but on the yearly basis the inflation edged to 0.5% from 0.3% a year ago. Moreover, on the yearly basis, the core CPI increased higher to 1.4% from 1.2% prior. In conclusion, it is not a huge improvement, but enough perhaps to give the BoE some food for thought in their August inflation report.
Let's now take a look at the GBP/USD technical picture in the 4H time frame. The key resistance zone between the levels of 1.3484 - 1.3562 was not violated and the market got back below the 55 and 100 moving average again. Despite the relatively good data, bears are still in full control over this market and any rally is a chance to open more sell orders. The next support is seen at the level of 1.3103.
