Global macro analysis for 04/04/2017:
The PMI Construction in the UK fell to 52.2 from 52.5 in February, 0.3 points lower than consensus. After Monday's slight disappointment with the PMI Manufacturing data (54.2, threshold 55), the market was likely to be equally afraid of a decline in today's reading, so a modest correction is calming. The details of the report said the slowdown in housing was offset by a pickup in civil engineering and commercial activity, but the business activity growth eased in March. In conclusion, the data are still quite decent and so far there is no need to panic over the Brexit uncertainty.
Let's now take a look at the GBP/USD technical picture at the H1 time frame after the data were published. The market remains stable at 1.2440, although it still means a decrease of 0.35% from the start of the day. However, the decrease towards the next technical support at the level of 1.2402 might be continued mainly due to unfinished bearish flag pattern. The projected target is at the level of 1.2334.
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