FX.co ★ Global macro overview for 28/09/2016

Global macro overview for 28/09/2016:

Interesting statements the Bank of England's Governor Carney hit the Scottish mass media yesterday. Regarding the UK economy performance after the Brexit, he said: "We expected a material slowing in the economy as a consequence of the decision to Leave...That is not a comment on the long-term prospects for the UK economy. There are positive long-term prospects for the UK economy". Moreover, he added that UK economy is currently at the period of uncertainty and adjustment from strong growth to "something less than that". In conclusion, there is no need to worry about the post-Brexit UK economy as it is dong just fine, and despite the temporary obstacles, the outlook for the UK is still positive.

Let's now take a look at GBP/USD technical picture on the 4H time frame. The market trades below all of the moving averages, and the recent attempt to rally higher was a failure. The bears seem to be in control over this market and any break below the 1.2865 - 1.2850 area will confirm the negative outlook.