FX.co ★ Global macro overview for 12/05/2016

Global macro overview for 12/05/2016:

The main event of the week is the Bank of England interest rate decision and monetary policy summary, which is scheduled for release at 11:00am GMT today. Market participants expect no change in the key interest rate as it should stay at the level of 0.50%, together with the asset purchase facility at 375bln pounds. There might be however some surprise in the bank rate votes. Currently, the 0-0-9 structure is still expected, but Bank of England is set to update its take on how the Brexit is affecting the economy as there are only six weeks to the June referendum. In conclusion, very interesting BoE meeting is ahead as the risk of a vote to leave the EU has helped push up investor bets for a rate cut before the end of the year.

Let's now take a look at the GBP/USD technical picture in 4h time frame. The market has stuck in the congestion zone between two important levels: technical resistance at the level of 1.4473 and technician support at the level of 1.4374. The higher time frames remain bearish and in case of a rate cut or no change the selling pressure in this pair might be strong.