FX.co ★ Global macro overview for 25/07/2016

Global macro overview for 25/07/2016:

The British PMI Manufacturing data were revealed last week and they add more bad news for a post-Brexit Britain. This indicator was the first one published after the Brexit vote on 23rd June. Markit's manufacturing Purchasing Managers' Index fell to 49.1 points, down from 52.1 in June. The manufacturing activity is slumping at the fastest rate since the height of the global financial crisis in early-2009. In conclusion, the UK economy has been under pressure as Brexit-related uncertainty darkened the outlook for businesses and there have been no clear signs of improvement so far.

Let's take a look at the GBP/USD technical picture on the daily time frame. The pair trades clearly below the 55,100 and 200 daily moving averages, and the bear camp is in full control over this market. The daily support at 1.3067 is now being tested and if it's not broken out, it will lead to an immediate test of the next support at 1.2794.