{"id":11029,"date":"2010-07-12T12:30:01","date_gmt":"2010-07-12T16:30:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11029"},"modified":"2010-07-12T12:30:01","modified_gmt":"2010-07-12T16:30:01","slug":"gbpusd-bounces-off-intraday-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/07\/12\/gbpusd-bounces-off-intraday-lows\/","title":{"rendered":"GBP\/USD Bounces off Intraday Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is bouncing nicely from intraday lows as the currency pair follows U.S. equities higher.\u00a0 BP is trading higher by over 5% and is likely boosting the Pound with investors reacting positively to news that BP will liquidate some assets in order to account for the Gulf cleanup tab.\u00a0 Meanwhile, although Britain\u2019s final GDP printed in line with analyst estimates, the current account deficit came in much lower than anticipated.\u00a0 The downturn in the current account reflects the large trade balance deficit we saw last week.\u00a0 Hence, the downturn on the Pound has clearly taken its toll on consumption and imports which haven\u2019t been offset by exports.\u00a0 The news knocked the Cable below an uptrend line and its highly psychological 1.50 level, though the currency pair has regained most of its losses at this point.\u00a0 Investors will now turn their attention to U.S. earnings with Alcoa kicking off the season after the bell.\u00a0 The earnings season as a hint of uncertainty to it since investors are uncertain how much fiscal problems in the EU have impacted U.S. corporate performance.\u00a0 If U.S. earnings disappoint then this could weigh on the Cable and risk trade as a whole.\u00a0 The UK will release its key CPI figure tomorrow and it will be interesting to see if it remains above 3%.\u00a0 If so, speculation could continue that the BoE is becoming a bit more hawkish in its monetary policy stance.\u00a0 Hence, if the number prints higher than expectations then the Cable could shoot higher.\u00a0 Meanwhile, if the CPI drops below 3% the Cable could take a near-term hit since part of the energy behind its drive higher was the recent vote for a 25bp hike in the benchmark rate.<\/p>\n

Technically speaking, the Cable has multiple uptrend lines serving as technical cushions along with intraday lows and its highly psychological 1.50 level.\u00a0 As for the topside, the Cable faces technical barriers in the form of 6\/29 and 7\/8 highs.
\nPresent Price: 1.5045
\nResistances: 1.5046, 1.5066, 1.5081, 1.5101, 1.5124, 1.5143, 1.5168
\nSupports: 1.5028, 1.5008, 1.4987, 1.4961, 1.4944, 1.4929, 1.4912
\nPsychological: 1.50, July highs and lows<\/p>\n

\"\"<\/a><\/p>\n

(click chart to enlarge)<\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers.<\/a><\/strong><\/p>\n

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

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":"

By Fast Brokers – The Cable is bouncing nicely from intraday lows as the currency pair follows U.S. equities higher.\u00a0 BP is trading higher by over 5% and is likely boosting the Pound with investors reacting positively to news that BP will liquidate some assets in order to account for the Gulf cleanup tab.\u00a0 Meanwhile, … <\/p>\n

Continue reading “GBP\/USD Bounces off Intraday Lows”<\/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-11029","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11029","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=11029"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11029\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=11029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=11029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=11029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}