{"id":1822,"date":"2009-05-07T11:50:13","date_gmt":"2009-05-07T16:50:13","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1822"},"modified":"2009-05-07T11:50:13","modified_gmt":"2009-05-07T16:50:13","slug":"gbpusd-daily-commentary-for-5709","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/07\/gbpusd-daily-commentary-for-5709\/","title":{"rendered":"GBP\/USD Daily Commentary for 5.7.09"},"content":{"rendered":"

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

The Pound is experienced relative weakness across the board after the BOE announced it will add $50 billion to its present quantitative easing operation to make a grand total of $125 billion.\u00a0 While analysts expected the BOE to keep its benchmark rate unchanged at .50%, the additional funds for quantitative easing caught investors a bit off-guard.\u00a0 Boosting quantitative easing could indicate that deflationary pressures are stronger than expected, meaning the British economy is still facing some unforeseen difficulties.\u00a0 The Cable pulled back from its rally on strong volume in response to the news.<\/p>\n

Despite today\u2019s downturn, the Cable has found reliable support once again at 1.50, showing the bulls aren\u2019t ready to call it quits.\u00a0 The resilience of the GBP\/USD stems from the consistent, positive economic data coming from Britain over the past two weeks.\u00a0 Additionally, the S&P futures have seemingly broken free of their 900 psychological level, so the Cable is receiving help from its positive correlation with U.S. equities.\u00a0 However, the large volume down-bar is disconcerting.\u00a0 Therefore, if U.S. equities experience profit-taking today, the GBP\/USD could be under substantial selling pressure.\u00a0 The 1.50 level and our 3rd tier uptrend line with be key for the near-term.\u00a0 Regardless of the present pullback, we maintain our bullish outlook on the GBP\/USD given positive global economic data and the current strength of U.S. equities.<\/p>\n

Fundamentally, we maintain resistances of 1.5059, 1.5114, 1.5158, 1.5213, and 1.5257.\u00a0 To the downside, we hold supports of 1.5017, 1.4988, 1.4946, 1.4902, and 1.4869.\u00a0 1.50 serves as a key psychological cushion with 1.55 acting as a psychological barrier. The GBP\/USD is currently exchanging at 1.5051.<\/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 Pound is experienced relative weakness across the board after the BOE announced it will add $50 billion to its present quantitative…<\/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-1822","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1822","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=1822"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1822\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}