Global macro overview for 21/11/2016:
UK Prime Minister Theresa May said in a speech at the Confederation of British Industry’s annual conference in London that after Brexit the UK needs to be prepared to adapt and change. She stated that the underlining driving force for the Brexit vote was the people’s call for a fairer economy and this is why the big business should work with the government in order to ensure the benefits of capitalism are shared more equally. Moreover, she pledged to cut the UK corporation tax to the levels lower than US and the aim is the UK to have the lowest corporate tax rate among G20 nations. And last, but not least, she promised £2bn of investment in science and research and tax breaks for innovators after Brexit. In conclusion, some bold statements from the UK PM can not be neglected. Ambitious promises, plans and a fresh approach towards a new way of thinking for government-business relationships can make the real difference in a post-Brexit UK.
Let’s now take a look at the GBP/USD technical picture in the 4H time frame. The market rallied slightly after May’s speech, but so far it stopped at first intraday resistance at the level of 1.2390. Nevertheless, the key support at the level of 1.2333 looks solid and the bounce might extend higher towards the next technical resistance at the level of 1.2511.
The material has been provided by InstaForex Company – www.instaforex.com