Global macro overview for 11/05/2017:
The industrial production data from the UK was slightly worse than expected. Market participants expected an increase in the industrial output from -0.8% last month to -0.4% for the reported month, but the number release was at the level of -0.5%. On a yearly basis, the industrial output decreased from 2.5% to 1.4%, but it is still above zero percent. Interestingly, the Markit PMI data was released at the three-years high last week, and the mood in the manufacturing sector still looks encouraging. The UK post-Brexit economy is still performing well. So far there have been no reasons to worry about further results.
Let's now take a look at the GBP/JPY technical picture on the H4 timeframe. The market is trading just below the important technical resistance at the level of 148.40 and the trading conditions look very overbought with a visible bearish divergence between the price and momentum indicator. Some corrective pullback might be developing and the next technical support is seen at 147.07 - 146.69 and then at the level of 145.61. Bigger time frames, like daily and weekly, do not show any negative divergences yet.
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