{"id":1928,"date":"2009-05-12T10:36:13","date_gmt":"2009-05-12T15:36:13","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1928"},"modified":"2009-05-12T10:36:13","modified_gmt":"2009-05-12T15:36:13","slug":"gbpusd-daily-commentary-for-51209","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/12\/gbpusd-daily-commentary-for-51209\/","title":{"rendered":"GBP\/USD Daily Commentary for 5.12.09"},"content":{"rendered":"

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

The Cable is climbing higher with a purpose, leaving 1.50 in its past as it takes full advantage of its upward momentum.\u00a0 Bulls are encouraged as positive data continues to roll in from Britain.\u00a0 Yesterday\u2019s RICS House Price Balance release only reconfirmed what we saw the last two weeks, a stabilization in home prices.\u00a0 Since the economic crisis began in the housing sector, an upward slope in prices gives hope that the worst may be behind us.\u00a0 The key for the GBP\/USD\u2019s rally today is the much better than expected Manufacturing Production number.\u00a0 Manufacturing Production has recovered to its highest level since June 2008 and in the process reached a respectable, pre-crisis level.\u00a0 Meanwhile, the Cable has blown by our key, last defense downtrend line while leaving 1.50 behind.\u00a0 Therefore, we maintain our medium-term bullish outlook for the aforementioned reasons.<\/p>\n

While we maintain bullish on the Cable, the currency pair could encounter some headwinds in the near-term as it approaches January 09\u2019 highs.\u00a0 Though this barrier isn\u2019t likely to kill the Cable\u2019s uptrend, it could stall the rally temporarily should the bulls run out of energy.\u00a0 Therefore keep a close eye on volume.\u00a0 If action should die down, the GBP\/USD could experience a near-term pullback and consolidation.<\/p>\n

The BOE will keep the news flowing this week with Claimant Count Change (CCC), Average Earnings Index, and the BOE Inflation Report hitting the newswires in Wednesday\u2019s trading session.\u00a0 The CCC will be watched closely since April\u2019s number revealed a surprisingly swift drop, indicating an improving employment market.\u00a0 Therefore, volatility could easily pick up should the numbers surprise analysts in either direction.<\/p>\n

Britain will release its BRC Retail Sales Monitor and RICS House Price Balance late in Monday\u2019s session followed by Manufacturing Production and Trade Balance on Tuesday.\u00a0 Therefore, we could see some reasonable volatility over the next 24 hours.<\/p>\n

Fundamentally, we find resistances of 1.5322, 1.5374, 1.5438, 1.5526, and 1.5576.\u00a0 To the downside, we see supports of 1.5256, 1.5213, 1.5158, 1.5114, and 1.5059.\u00a0 1.50 serves as a key psychological cushion with 1.55 acting as a psychological barrier. The GBP\/USD is currently exchanging at 1.5295.<\/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 is climbing higher with a purpose, leaving 1.50 in its past as it takes full advantage of its upward momentum…<\/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-1928","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1928","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=1928"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1928\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}