{"id":10254,"date":"2010-06-15T11:20:49","date_gmt":"2010-06-15T15:20:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10254"},"modified":"2010-06-15T11:20:49","modified_gmt":"2010-06-15T15:20:49","slug":"gbpusd-surges-after-obr-estimates","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/15\/gbpusd-surges-after-obr-estimates\/","title":{"rendered":"GBP\/USD Surges After OBR Estimates"},"content":{"rendered":"<p><strong>By Fast Brokers<\/strong> &#8211; The Cable surged back towards 1.48 after the Office of Budget Responsibility estimated a smaller UK budget deficit than anticipated.\u00a0 The downward revision gives investors more confidence that the UK will be able to maintain its AAA rating, clearly a Cable positive.\u00a0 However, the 2011-2012 deficit projection is still above 10% and as we\u2019ve seen in the past, budget estimates are not always accurate.\u00a0 Regardless, the OBR\u2019s announcement has allowed the Cable to expand upon its upward momentum originating from May lows.\u00a0 These figures from the OBR come a week before parliament releases its highly anticipated emergency budget and it will be interesting to see what the treasury comes up with.\u00a0 Meanwhile, investors will shift their focus UK CPI and the inflation report hearings.\u00a0 Even though the BoE has waved off inflation concerns, CPI has been over its target of 3% for some time now and investors will be looking carefully to see if recent inflationary pressures really do cool.\u00a0 Investors will also be focusing on the EU again as analysts monitor bond spreads of PIIGS countries following Moody\u2019s downgrade of Greek debt to junk status.\u00a0 Although the move does not come as a surprise, the downgrade could cap gains in the Cable and other major dollar pairs over the near-term.<\/p>\n<p>Technically speaking, the Cable faces downtrend lines running through April highs along with 6\/14 highs and the psychological 1.48 level.\u00a0 As for the downside, the Cable is developing a new near-term support structure, including downtrend lines running through May and June lows.\u00a0 The Cable also has technical supports in the form of 6\/14 and 6\/11 lows along with the 1.47 and 1.46 level should they be tested.<\/p>\n<p>Present Price: 1.4755<br \/>\nResistances: 1.4769, 1.4810, 1.4854, 1.4890, 1.4912, 1.4953<br \/>\nSupports: 1.4720, 1.4690, 1.4648, 1.4609, 1.4583, 1.4552, 1.4526<br \/>\nPsychological: 1.50, 1.45, June highs and lows<\/p>\n<p><a href=\"http:\/\/www.fastbrokers.com\/commentary\/image\/June15Cable.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.fastbrokers.com\/commentary\/image\/June15Cable.png\" alt=\"\" width=\"595\" height=\"400\" \/><\/a><\/p>\n<p>(click chart to enlarge)<\/p>\n<p><em><strong>Market Commentary<\/strong><\/em> provided by <strong><span style=\"text-decoration: underline;\"><a href=\"http:\/\/fastbrokers.com\/index.php?9f9043f9\" target=\"_blank\">Fast                                     Brokers.<\/a><\/span><\/strong><\/p>\n<p><strong>Disclaimer:<\/strong> FastBrokers\u2019 market commentary is                                     provided for information purposes only and      under    no               circumstances        should        be   regarded     neither   as  an       investment        advice nor as a              solicitation     or      an    offer     to sell\/buy     any          financial  product.          FastBrokers     assumes      no                responsibility   or  liability    from  gains  or          losses         incurred by      the            information herein        contained.<\/p>\n<p><strong>Risk Disclosure:<\/strong> There is a substantial risk of loss                                     in trading futures and foreign     exchange.        Please           carefully        review     all         risk   disclosure      documents    before        opening an    account         as   these           financial       instruments  are   not         appropriate      for all          investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Fast Brokers &#8211; The Cable surged back towards 1.48 after the Office of Budget Responsibility estimated a smaller UK budget deficit than anticipated.\u00a0 The downward revision gives investors more confidence that the UK will be able to maintain its AAA rating, clearly a Cable positive.\u00a0 However, the 2011-2012 deficit projection is still above 10% &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/06\/15\/gbpusd-surges-after-obr-estimates\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;GBP\/USD Surges After OBR Estimates&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10254","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=10254"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10254\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=10254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=10254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=10254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}