{"id":2238,"date":"2009-06-02T10:37:37","date_gmt":"2009-06-02T15:37:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2238"},"modified":"2009-06-02T10:37:37","modified_gmt":"2009-06-02T15:37:37","slug":"gbpusd-balances-after-better-than-expected-construction-pmi","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/02\/gbpusd-balances-after-better-than-expected-construction-pmi\/","title":{"rendered":"GBP\/USD Balances After Better Than Expected Construction PMI"},"content":{"rendered":"

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

The Cable pulled back on declining volume yesterday, although losses were negligible.\u00a0 The GBP\/USD is already popping up Tuesday after British Construction PMI and Net Lending to Individuals both came in encouragingly above analyst expectations.\u00a0 The recovery in the British economy continues to outpace even optimistic expectations, giving the Pound relative strength.\u00a0 Though the EUR\/USD is outperforming the GBP\/USD on the present 4-hour bar, we believe the recent British economic data will help push the Pound higher over the remainder of the week.<\/p>\n

Meanwhile, the S&P futures are breaking out to new yearly highs, adding fuel to the fire of the uptrend of both the Cable and the EUR\/USD due to their positive correlation with U.S. equities.\u00a0 However, as with the EUR\/USD, we notice an upcoming zone of technical resistance which may result in some near-term consolidation.\u00a0 For the Cable, the next obstacle becomes October 30 highs, making the psychological 1.65-1.66 zone a possible area of consolidation.\u00a0 The GBP\/USD has made quite a run as of late, and it wouldn\u2019t be surprising to see some bulls cash in profits.<\/p>\n

We\u2019re going to see some more important economic data surface from Britain over the next few days leading up to Thursday\u2019s interest rate decision.\u00a0 With the EU pretty quiet until Thursday, we could see the GBP\/USD exert higher comparative volatility for the time being.\u00a0 Investors will watch for continued confirmation of a recovery in British economic data along with good news from the U.S. economy.\u00a0 Despite our anticipation of approaching consolidation, we maintain our bullish outlook on the Cable trend wise due to the incredible progress made fundamentally over the past week.\u00a0 The GBP\/USD has left behind our key 2nd tier downtrend, meaning there is quite a bit of room to work with to the upside.<\/p>\n

Looking ahead to Wednesday, Britain will release their Halifax HPI and Services PMI data points along with key numbers from the U.S.\u00a0 If the data is better than expected all around, the GBP\/USD may bypass consolidation and dart higher in optimism concerning a recovering global economy.\u00a0 If the Cable can climb above our 1.6679 resistance the currency pair could really take off.\u00a0 We maintain our bullish outlook on the GBP\/USD due to the aforementioned analysis.<\/p>\n

Fundamentally, we find resistances of 1.6462, 1.6522, 1.6587, 1.6679, and 1.6734.\u00a0 To the downside, we see supports of 1.6379, 1.6343 1.6307, 1.6233, and 1.6170.\u00a0 The 1.60 level acts as a psychological cushion with 1.65 serving as a psychological barrier.\u00a0 The GBP\/USD is currently exchanging at 1.6440.<\/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 pulled back on declining volume yesterday, although losses were negligible. The GBP\/USD is already…<\/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-2238","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2238","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=2238"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2238\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}