{"id":1491,"date":"2009-04-21T09:54:35","date_gmt":"2009-04-21T14:54:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1491"},"modified":"2009-04-21T09:54:35","modified_gmt":"2009-04-21T14:54:35","slug":"gbpusd-daily-commentary-for-42109","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/04\/21\/gbpusd-daily-commentary-for-42109\/","title":{"rendered":"GBP\/USD Daily Commentary for 4.21.09"},"content":{"rendered":"

By Fast Brokers<\/span><\/p>\n

The Cable\u2019s intraday rally is fading with U.S. corporate earnings disappointing investors.\u00a0 The positive correlation with U.S. equities is back in action so the S&P futures should be watched closely.\u00a0 The Cable is experiencing a little strength since Britain\u2019s CPI came in line with analyst expectations.\u00a0 However, although the CPI number met expectations, it was not positive by any accounts.\u00a0 Britain\u2019s CPI has dipped below 3% for the first time since May 2008 and the trend is clearly downward sloping.\u00a0 Dropping consumer prices raises the fear of inflation, which has been picking up in the U.S. and EU as well.\u00a0 Declining prices erode the profit margins, and ultimately result in higher unemployment if the prices fall to a level that significantly impacts sustainability of a particular company.\u00a0 Today\u2019s earnings report from Tesco, Europe\u2019s second largest retailer, reflects the toll declining consumption and lower prices are having on companies.\u00a0 Tesco released its weakest earnings in 15 years, and confirmed the use of lower prices in an effort to attract cash-strapped consumers.\u00a0 Today\u2019s events take the wind out of the Cable\u2019s sails, contradicting the recovery in economic data we saw earlier this month.\u00a0 However, as with the EUR\/USD, the GBP\/USD has several foreseeable uptrend supports to the downside, making the path lower layered with obstacles.\u00a0 Although the Cable dipped below our 2nd tier uptrend line, the currency pair is battling back above as we speak.\u00a0 The more significant fundamental development made yesterday was a decline below the psychological 1.45 level.\u00a0 Even though the GBP\/USD recovered quickly, the level has been breached, setting the plate for another near-term selloff.\u00a0 Our 1st tier downtrend line and 2nd tier uptrend line will reach an inflection point soon, meaning we could see high volatility throughout the rest of the week.\u00a0 Investors will be eager to see Britain\u2019s Claimant Count Change release tomorrow.\u00a0 Fundamentally, we maintain resistances of 1.4579, 1.4612, 1.4677, 1.4730, and 1.4770.\u00a0 The 1.50 level remains a key psychological barrier while 1.45 serves as a psychological cushion.\u00a0 To the downside, we hold supports of 1.4532, 1.4478, 1.4438, 1.4391, and 1.4362.\u00a0\u00a0 The GBP\/USD is currently exchanging at 1.4555.<\/p>\n

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

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

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither 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\u2019s intraday rally is fading with U.S. corporate earnings disappointing investors. The positive correlation with U.S. equities…<\/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-1491","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1491","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=1491"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1491\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}