{"id":2595,"date":"2009-06-22T09:30:56","date_gmt":"2009-06-22T14:30:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2595"},"modified":"2009-06-22T09:30:56","modified_gmt":"2009-06-22T14:30:56","slug":"gbpusd-walks-along-our-3rd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/22\/gbpusd-walks-along-our-3rd-tier-downtrend-line\/","title":{"rendered":"GBP\/USD Walks along our 3rd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is giving into our 3rd tier downtrend line after last week\u2019s push was blocked by our trend line and the psychological 1.65 level on declining volume.\u00a0 Despite the GBP\/USD\u2019s willingness to head higher, the currency pair is giving into its positive correlation with gold and U.S. equities.\u00a0 Market sentiment is turning sour due to a combination of international tension (Iran\/N.Korea) and the World Bank reducing its outlook for global economic growth from -1.7% to -2.9%.\u00a0 The possibility remains that present market stability is not a true bottom since we have not seen a complete recovery in economic data globally.\u00a0 The Cable is also dealing with a struggling Euro as the EU currency depreciates strongly across the board.\u00a0 Meanwhile, the Pound maintains its relative strength due to the fact that Britain\u2019s economic data has been the most encouraging globally next to China\u2019s.\u00a0 The Cable continues to be resilient after last week\u2019s CCC number reiterated the encouraging improvement taking place in Britain\u2019s employment market.\u00a0 Regardless, U.S. equities are treading water and the Cable\u2019s positive correlation with the S&P should shine through at the end of the day.<\/p>\n

Speaking of the S&P, the indicie\u2019s futures are doing what they can to avoid a retest of the highly psychological 900 level.\u00a0 Any significant pullback in the S&P futures would likely result in a corresponding downturn in the Cable.\u00a0 In other correlation developments, gold has made an aggressive move to the downside after a period of tight consolidation.\u00a0 Gold has had a negative correlation with the Dollar, implying the greenback could experience a swift appreciation soon.\u00a0 The Cable\u2019s inability to tackle previous June highs and the psychological 1.65 level is certainly discouraging.\u00a0 We\u2019ve noticed some interesting volume to the downside while volume tailed off during important moments of resistance.\u00a0 Hence, we believe near-term momentum remains to the downside in the GBP\/USD.\u00a0 Fortunately for the bulls, the currency pair has constructed some nice supports along the way due to the Pound\u2019s comparative strength globally.\u00a0 Therefore, should the Cable head south, the currency pair has close defenses at our 3rd tier uptrend line and June 18 lows.\u00a0 As for the upside, the key for the GBP\/USD will be clearing our 3rd tier downtrend line and previous June highs on rising volume.\u00a0\u00a0 Should this happen, we could witness a nice near-term run.<\/p>\n

Present Price: 1.6434<\/p>\n

Resistances: 1.6498, 1.6574, 1.6624, 1.6712, 1.6851<\/p>\n

Supports: 1.6412, 1.6371, 1.6315 1.6210, 1.6141<\/p>\n

Psychological: 1.65, 1.60<\/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 giving into our 3rd tier downtrend line after last week\u2019s push was blocked by our trend line and the psychological 1.65 level on declining volume.\u00a0 Despite the GBP\/USD\u2019s willingness to head higher, the currency pair is giving into its positive correlation with gold and U.S. equities.\u00a0 Market sentiment … <\/p>\n

Continue reading “GBP\/USD Walks along 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-2595","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2595","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=2595"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2595\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}