{"id":2316,"date":"2009-06-04T09:21:13","date_gmt":"2009-06-04T14:21:13","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2316"},"modified":"2009-06-04T09:21:13","modified_gmt":"2009-06-04T14:21:13","slug":"gbpusd-drops-on-rising-volume","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/04\/gbpusd-drops-on-rising-volume\/","title":{"rendered":"GBP\/USD Drops on Rising Volume"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is pulling back on rising volume along with the EUR\/USD, raising a red flag as far as the uptrend is concerned.\u00a0 Hence, we could see a retracement back towards our 2nd tier uptrend line and the 1.60 level shortly.\u00a0 The GBP\/USD was also batted away by our 2nd tier uptrend line intraday, a negative sign fundamentally.\u00a0 Weakness in the Pound comes despite a much better than expected Halifax HPI reading, not to mention the better than expected PMI reports throughout the week.\u00a0 Therefore, it wouldn\u2019t be surprising if the Cable\u2019s weakness was short-lived.\u00a0 As with the EUR\/USD, the large volume to the downside is very disconcerting.\u00a0 However, we should continue to witness relative strength in the Pound as long as GBP data outperforms.<\/p>\n

The Pound has been hit along with the other major Dollar pairs after Fed Chairman Bernanke made a heavy-handed speech regarding America\u2019s intention to protect the Dollar and unwind its aggressive monetary policy as soon as possible.\u00a0 Bernanke\u2019s rhetoric echoes that of Treasury Secretary Geithner during his visit to China.\u00a0 It appears the U.S. is trying to change the psychology of investors concerning the rapid depreciation of the Dollar.\u00a0 Their speeches have had a noticeable near-term impact, appreciating the Dollar across the board.\u00a0 However, whether the declaration is able to dislodge the medium-term uptrend of the Cable is another question.\u00a0 The current downward movement is certainly worth keeping an eye on, and investors should monitor the ability of our trend lines and psychological levels to hold.\u00a0 That being said, we have a negative outlook on the Cable in the near-term, yet maintain our medium-term bullish outlook trend-wise.\u00a0 If the Cable continues to pullback investors should watch for volume to dwindle before testing the waters.<\/p>\n

Fundamentally, we find resistances of 1.6306, 1.6347, 1.6403, 1.6479 and 1.6581.\u00a0 To the downside, we see supports of 1.6233, 1.6159, 1.6077, 1.6006, and 1.5950.\u00a0 The 1.65 level acts as a psychological resistance with 1.60 serving as a psychological cushion.\u00a0 The GBP\/USD is currently exchanging at 1.6212.<\/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 pulling back on rising volume along with the EUR\/USD, raising a red flag as far as the uptrend is concerned.\u00a0 Hence, we could see a retracement back towards our 2nd tier uptrend line and the 1.60 level shortly.\u00a0 The GBP\/USD was also batted away by our 2nd tier … <\/p>\n

Continue reading “GBP\/USD Drops on Rising Volume”<\/span><\/a><\/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-2316","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2316","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=2316"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2316\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}