{"id":2164,"date":"2009-05-28T09:07:27","date_gmt":"2009-05-28T14:07:27","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2164"},"modified":"2009-05-28T09:07:27","modified_gmt":"2009-05-28T14:07:27","slug":"gbpusd-daily-commentary-for-52809","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/28\/gbpusd-daily-commentary-for-52809\/","title":{"rendered":"GBP\/USD Daily Commentary for 5.28.09"},"content":{"rendered":"

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

The Cable weakened with U.S. equities yesterday, exercising its positive correlation with the S&P futures as investors locked in gains at the highly psychological 1.60 level.\u00a0 Today\u2019s CBI realized sales number was a little disappointing, as was yesterday\u2019s BBA mortgage approvals.\u00a0 Therefore, the optimism surrounding a recovery in consumption and housing has been dented.\u00a0 Regardless, all-around economic data from Britain remains on the upswing until we see significant drawbacks across the board.\u00a0 Hence, the Cable remains in a bullish trend, although it may experience relative weakness as compared to its European counterpart, reflected by a stabilizing EUR\/GBP.<\/p>\n

Our 2nd tier downtrend line is a critical obstacle since it stretches back to July 2008 highs, forming our last foreseeable blockade for the medium-term.\u00a0 Hence, even though the Cable\u2019s near-term gains have been impressive, we could witness even more exciting movements to the upside if the currency pair can clear the 2nd tier.\u00a0 Due to the significance of present levels, we wouldn\u2019t be surprised to experience continued hesitation around 1.60 as investors debate leaving the key resistance behind.\u00a0 Meanwhile, the GBP\/USD is building up a solid base between 1.5822 and 1.5988, which could serve as a reliable defense should the currency leap above 1.60.\u00a0 We advise keeping a close eye on volume over the next couple sessions.\u00a0 A large up-bar backed by considerable volume could indicate a forthcoming breakout.<\/p>\n

All eyes will be on U.S. equity markets and their reaction to incoming economic data and Treasury bill auctions.\u00a0 As with the EUR\/USD, the inconsistent performance of the S&P serves as a negative counterpunch to the optimistic fundamentals exhibited by the Cable.\u00a0 However, if the S&P can manage to shake loose of 900 and make a fundamental move to the upside this would likely push both the GBP\/USD and the EUR\/USD beyond their respective barriers.\u00a0 We maintain our bullish outlook on the GBP\/USD trend-wise until further notice.<\/p>\n

Fundamentally, we find resistances of 1.5988, 1.6062, 1.6129, 1.6233, and 1.6307.\u00a0 To the downside, we see supports of 1.5988, 1.5899, 1.5822, 1.5727, and 1.5662.\u00a0 The GBP\/USD is currently exchanging at 1.5953.<\/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 weakened with U.S. equities yesterday, exercising its positive correlation with the S&P…<\/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-2164","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2164","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=2164"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2164\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}