{"id":2443,"date":"2009-06-11T12:28:43","date_gmt":"2009-06-11T17:28:43","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2443"},"modified":"2009-06-11T12:28:43","modified_gmt":"2009-06-11T17:28:43","slug":"gbpusd-rises-to-the-challenge-of-our-3rd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/11\/gbpusd-rises-to-the-challenge-of-our-3rd-tier-downtrend-line\/","title":{"rendered":"GBP\/USD Rises to the Challenge of our 3rd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable continues its brisk climb, forming a v-shaped recovery from last week\u2019s pullback.\u00a0 The currency pair is making the most of yesterday\u2019s manufacturing production report and the fact that we\u2019re witnessing a broad depreciation of the Dollar.\u00a0 Britain\u2019s data has continued to recover well as compared to the U.S. and EU, giving a relative strength to the Pound.\u00a0 However, there is still a force acting to the downside, and the Cable will need to overcome our 3rd tier downtrend line and previous June highs before we feel comfortable again with a bullish stance.<\/p>\n

Some analysts predict we may see a sizeable pullback in U.S. equities soon due to the fact that the present run may be overextended.\u00a0 This would likely imply a deflection from our 3rd tier downtrend line and an ensuing pullback in the Cable due to their positive correlation.\u00a0 The currency pair did register noticeable volume to the downside last week, but this doesn\u2019t necessarily imply a protracted downturn.\u00a0 In fact, we should note that the volume we saw on June 4th was the most action the currency pair has registered since mid-December of 2008.\u00a0 The market could be sending us a message, and volatility should ensue for the near-term.<\/p>\n

An interesting conversation these days involves U.S. Treasuries and the response of equities.\u00a0 If Treasury yields continue to climb and this has a large, negative impact on equities, there\u2019s the possibility of the GBP\/USD and EUR\/USD changing their positive correlation with the S&P as investors lose confidence in the Dollar.\u00a0 However, this is merely speculation and the positive correlation should be intact for the foreseeable future, just something to keep an eye on.\u00a0 The medium-term uptrend of the Cable is alive and well, and the currency pair should continue to exhibit relative strength since its economic data is out of the way for the week.\u00a0 If the GBP\/USD can get above our top-end resistance near-term gains could accelerate.
\nPresent Price: 1.6542<\/p>\n

Resistances: 1.6574, 1.6626, 1.6686, 1.6723<\/p>\n

Supports: 1.6497, 1.6458, 1.6412, 1.6371, 1.6315<\/p>\n

Psychological: 1.65, 1.70<\/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 continues its brisk climb, forming a v-shaped recovery from last week\u2019s pullback.\u00a0 The currency pair is making the most of yesterday\u2019s manufacturing production report and the fact that we\u2019re witnessing a broad depreciation of the Dollar.\u00a0 Britain\u2019s data has continued to recover well as compared to the U.S. and … <\/p>\n

Continue reading “GBP\/USD Rises to the Challenge of our 3rd Tier Downtrend Line”<\/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-2443","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2443","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=2443"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2443\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}