{"id":2388,"date":"2009-06-09T11:17:24","date_gmt":"2009-06-09T16:17:24","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2388"},"modified":"2009-06-09T11:17:24","modified_gmt":"2009-06-09T16:17:24","slug":"gbpusd-makes-a-solid-push-back-above-160","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/09\/gbpusd-makes-a-solid-push-back-above-160\/","title":{"rendered":"GBP\/USD Makes a Solid Push Back Above 1.60"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has propelled from our 3rd tier uptrend line to make a solid run past the psychological 1.60 level.\u00a0 While the performance of the GBP\/USD over the last 24 hours has been encouraging, the upward movement came with relatively weak volume as compared to last week\u2019s pullback.\u00a0 Regardless, bulls are coming to the defense of the Cable, and the currency pair could make a pop toward our 2nd tier downtrend line.\u00a0 As with the EUR\/USD, the significant volume to the downside was disconcerting and makes us contemplate whether we have entered a new, near-term downtrend.\u00a0 U.S. equities and crude futures are on an impressive run, and there is belief that these investment vehicles may have overextended themselves.<\/p>\n

Since economic data will be relatively quiet around the globe this week, the Cable may ultimately choose to abide by its positive correlation with the S&P futures.\u00a0 However, Britain will release Manufacturing Production and its Trade Balance tomorrow, which may prove to be market movers.\u00a0 If the economic data comes in weaker than anticipated and U.S. equities experience profit taking, we would not be surprised to see the Cable exhibit further downward pressure.\u00a0 That being said, we maintain our near-term negative outlook on the GBP\/USD unless we see a strong move to the upside accompanied by convincing volume.\u00a0 On the other hand, the climb back above 1.60 is certainly encouraging, and we wouldn\u2019t be surprised to witness more upward momentum today.<\/p>\n

Meanwhile, the Pound continues to show relative strength, exemplified by the negative performance of the EUR\/GBP.\u00a0 This is likely due to the fact that EU and U.S. economic data has been coming in mixed over the past six weeks, while numbers from Britain have been overwhelmingly positive.\u00a0 Therefore, we believe pure economic fundamentals are giving the Pound its edge.\u00a0 Furthermore, as a result of the improvement in economic data, we believe the medium-term still has a lot of strength despite any near-term downward pressure.<\/p>\n

Fundamentally, we find resistances of 1.6233, 1.6315, 1.6371, 1.6412, and 1.6458.\u00a0 To the downside, we see supports of 1.5863, 1.5777, 1.5703, 1.5629, and 1.5552.\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 1.6222.<\/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 has propelled from our 3rd tier uptrend line to make a solid run past the psychological 1.60 level.\u00a0 While the performance of the GBP\/USD over the last 24 hours has been encouraging, the upward movement came with relatively weak volume as compared to last week\u2019s pullback.\u00a0 Regardless, bulls are … <\/p>\n

Continue reading “GBP\/USD Makes a Solid Push Back Above 1.60”<\/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-2388","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2388","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=2388"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2388\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}