{"id":20496,"date":"2011-04-04T11:05:16","date_gmt":"2011-04-04T15:05:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20496"},"modified":"2011-04-04T11:05:16","modified_gmt":"2011-04-04T15:05:16","slug":"gbpusd-continues-to-recover","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/04\/04\/gbpusd-continues-to-recover\/","title":{"rendered":"GBP\/USD Continues to Recover"},"content":{"rendered":"

By Russell Glaser<\/strong><\/p>\n

The GBP\/USD is strengthening after the late March selling<\/a> that followed the publication of the UK budget on March 23rd. Today\u2019s stronger than expected construction data shows the market may be too pessimistic the British economy and the GBP\/USD.<\/p>\n

The British economy received some good news following the release of the construction PMI in Britain which came in at 55.4, a slight decline from last month\u2019s result of 56.5. Economists had forecasted a decline to 54.7.<\/p>\n

This brought strong bids to sterling. At the opening of the New York trading session the GBP\/USD continued to recover to 1.6160 from its opening week price of 1.6110.<\/p>\n

The much needed support for the British economy comes after a sell-off in the pound following a new high for the GBP\/USD and the publication of the UK budget on March 23rd. After the budget release, the GBP sold off across the board despite rising 10-year gilt yields and falling short sterling futures have fallen. Thus, traders expect British interest rates <\/a>to rise in the near term which should be a positive for sterling.<\/p>\n

Looking at the GBP\/USD, a sell-off occurred following the pair reaching a new high for 2011 at 1.6400 and the pair dropped as low as 1.5935 where the GBP\/USD found support near the 100-day moving average (red line). To the downside, the 1.5870 retracement from the January to March move is a viable support, as well as the 200-day moving average (black line) at 1.5850 which could come into play and coincides with the rising trend line off of the May 2010 low.<\/p>\n

As the GBP\/USD continues to recover, the first resistance level is today\u2019s high at 1.6180, followed by an initial target at the March high of 1.6400. A breach of this level would then set market players to target the November 2009 high at 1.6875.<\/p>\n

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

Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em>
\n<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The GBP\/USD is strengthening after the late March selling that followed the publication of the UK budget on March 23rd. Today\u2019s stronger than expected construction data shows the market may be too pessimistic the British economy and the GBP\/USD.<\/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-20496","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20496","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=20496"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20496\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=20496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=20496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=20496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}