{"id":2786,"date":"2009-07-02T10:52:44","date_gmt":"2009-07-02T15:52:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2786"},"modified":"2009-07-02T10:52:44","modified_gmt":"2009-07-02T15:52:44","slug":"gbpusd-sinks-after-negative-data-stream","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/02\/gbpusd-sinks-after-negative-data-stream\/","title":{"rendered":"GBP\/USD Sinks after Negative Data Stream"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is reacting negatively to the negative unemployment data points from both the U.S. and EU.\u00a0 Additionally, Britain\u2019s construction PMI contracted from its previously release, coming in below analyst expectations.\u00a0 The positive sentiment the Pound has garnered over the past couple months has been dented by the disappointing GDP and current account data released earlier this week.\u00a0 Additionally, we\u2019ve recently seen key British data points, such as today\u2019s construction PMI number, take a step back from their recovery uptrend.\u00a0 Therefore, our 1.6212 support may be tested again due to the questions raised by mixed data points.\u00a0 Britain will release two more heavily-weighted data points tomorrow, including its services PMI and the Halifax HPI.\u00a0 While home prices will likely continue to improve, it will be interesting to see whether the services PMI can keep its uptrend going, or if it contracts like today\u2019s construction PMI.<\/p>\n

Meanwhile, the S&P futures are retesting 900 again and crude is logging large losses on climbing volume.\u00a0 Investors should take note since these two investment vehicles are negative correlated with the Greenback, or positively correlated with the Cable.\u00a0 If the S&P can\u2019t hold onto June lows and crude experiences technically significant losses, the GBP\/USD would likely follow suit.\u00a0 If our 2nd tier downtrend line doesn\u2019t hold, we may see today\u2019s pullback pick up pace towards our 1st tier uptrend line.\u00a0 We believe our 1st tier uptrend plays a key role in regards to the near-term direction of the Cable.\u00a0 Therefore, investors should keep a close eye on this area should it be tested.\u00a0 While volatility should remain at a heightened level today due to the news and the fact that it\u2019s a holiday shortened week, we expect our 1st tier uptrend line to hold since investors will likely wait to see how the S&P behaves between 875-900.\u00a0 In the meantime, we maintain our neutral stance trend-wise on the Cable until the currency pair makes a clear break from either our 1st tier uptrend line or 3rd tier downtrend line.<\/p>\n

Present Price: 1.6352<\/p>\n

Resistances: 1.6405, 1.6446, 1.6449, 1.6553, 1.6602<\/p>\n

Supports: 1.6323, 1.6278, 1.6245, 1.6212, 1.6183<\/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 reacting negatively to the negative unemployment data points from both the U.S. and EU.\u00a0 Additionally, Britain\u2019s construction PMI contracted from its previously release, coming in below analyst expectations.\u00a0 The positive sentiment the Pound has garnered over the past couple months has been dented by the disappointing GDP and … <\/p>\n

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