{"id":1688,"date":"2009-04-30T11:00:16","date_gmt":"2009-04-30T16:00:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1688"},"modified":"2009-04-30T11:00:16","modified_gmt":"2009-04-30T16:00:16","slug":"gbpusd-daily-commentary-for-43009","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/04\/30\/gbpusd-daily-commentary-for-43009\/","title":{"rendered":"GBP\/USD Daily Commentary for 4.30.09"},"content":{"rendered":"

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

The Cable reacted positively despite worse than expected Prelim GDP data from the U.S. yesterday, catapulting towards our previous top-tier resistance of 1.4951 before reversing course.\u00a0 The GBP\/USD\u2019s reversal marks a failure to climb through 4\/6 highs, let alone tackle 1.50 and April highs.\u00a0 Therefore, the Cable certainly has its work cut out for it in to the upside as the S&P futures approach their highly psychological 900 level.\u00a0 Our 1.4730 support should prove to be a critical battle ground in the near-term if the Cable is to sell off further.\u00a0 If this level doesn\u2019t hold, we could see a reversal towards 1.4626.<\/p>\n

Weakness in the Cable comes despite a better than expected Nationwide HPI number.\u00a0 Even though the data surprised to the upside, housing prices registered a decline from April 2nd\u2019s release.\u00a0 We saw a similar improvement in the HPI in November 2008 only to witness a sharp reversal in December.\u00a0 Therefore, investors could be concerned we\u2019re witnessing another head-fake in home prices.\u00a0 Don\u2019t forget the financial crisis began with a collapse in housing, meaning stabilization in this area is a crucial leg in the chair of recovery.<\/p>\n

Skepticism aside, equities have been performing extraordinarily well as of late while breaking free of key fundamental barriers.\u00a0 Therefore, if bright spots in economic data and outperformance in equities spells an economic recovery, the Pound should appreciate against the Dollar trend-wise due to its positive correlation.\u00a0 That being said, we have the results of the stress tests coming on Monday, implying volatility should remain elevated through the remainder of the week.<\/p>\n

We maintain our bullish stance on the Cable, and the currency pair could recover quickly should it pop back above our 2nd tier downtrend line.<\/p>\n

Fundamentally, we maintain resistances of 1.4773, 1.4826, 1.4870, 1.4905, and 1.4951.\u00a0 To the downside, we hold our supports of 1.4730, 1.4667, 1.4626, 1.45667, and 1.4532.\u00a0 1.45 serves as a psychological cushion with 1.50 acting as a key psychological barrier. The GBP\/USD is currently exchanging at 1.4749.<\/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 reacted positively despite worse than expected Prelim GDP data from the U.S. yesterday, catapulting towards…<\/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-1688","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1688","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=1688"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1688\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}