{"id":2848,"date":"2009-07-08T11:01:50","date_gmt":"2009-07-08T16:01:50","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2848"},"modified":"2009-07-08T11:01:50","modified_gmt":"2009-07-08T16:01:50","slug":"gbpusd-may-retest-160-after-negative-hpi-number","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/08\/gbpusd-may-retest-160-after-negative-hpi-number\/","title":{"rendered":"GBP\/USD May Retest 1.60 after Negative HPI number"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is trying to recover to our 2nd tier uptrend line after yesterday\u2019s pullback resulting from a substantial selloff in U.S. equities.\u00a0 The Cable is finding little salvation in last night\u2019s better than expected Consumer Confidence number since both British Manufacturing Production and today\u2019s Halifax HPI come in negative.\u00a0 While we expected the pullback in Manufacturing Production since the PMI was negative last week, the disappointing HPI data deflates the confidence surrounding a potential recovery in the British housing market.\u00a0 These two negative data points, combined with last week\u2019s discouraging GDP and Current Account numbers, are weakening the Pound further.\u00a0 Meanwhile, the S&P futures are experiencing substantial downward pressure, and crude continues to log large losses.\u00a0 Hence, investor confidence still seems to be turning sour in regards to the longevity of a global economic recovery.<\/p>\n

We\u2019ve seen volume increase to the downside in both the GBP\/USD and the EUR\/USD, though total volume remains at a relatively subdued level.\u00a0 Therefore, investors should take notice if volume increases to the downside from Tuesday\u2019s session, for this could indicate a sharper selloff approaching.\u00a0 Though the Cable remains above 1.60, it is struggling to stay above our 1st tier downtrend line while hoping to reach our 2nd tier uptrend line.\u00a0 Should the Cable\u2019s immediate-term pullback should pick up pace, the currency pair could find noteworthy support in the psychological 1.60 level.\u00a0 If not, then the GBP\/USD still has our 1st tier uptrend line and June lows as a safety net.<\/p>\n

Investor and analyst focus will be on tomorrow\u2019s BoE meeting and 2nd quarter earnings releases.\u00a0 Rumors have been floating around that the BoE may increases its present quantitative easing plan by 25 billion.\u00a0 Even though these rumors are unsubstantiated, they make for an interesting BoE press conference.\u00a0 Investors will be paying particularly close attention to the BoE\u2019s plans regarding quantitative easing.\u00a0 However, should the BoE increase its level of QE, we wouldn\u2019t be surprised to see a small, near-term pop in the Cable since this is what occurred following the initiation of the plan.\u00a0 We noticed a similar positive reaction from the EUR\/USD after it announced its alternative liquidity measures as well.\u00a0 As far as earnings go, investors are very curious as to how 3rd and 4th quarter projections will fare.\u00a0 Naturally, corporate earnings should have a large impact on U.S. equities.\u00a0 If the S&P futures should falter, the Cable would likely tumble with them due to their strong positive correlation.<\/p>\n

Present Price: 1.6073<\/p>\n

Resistances: 1.6082, 1.6133, 1.6152, 1.6183, 1.6223<\/p>\n

Supports: 1.6052, 1.6018, 1.5978, 1.5924, 1.5887<\/p>\n

Psychological: 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 trying to recover to our 2nd tier uptrend line after yesterday\u2019s pullback resulting from a substantial selloff in U.S. equities.\u00a0 The Cable is finding little salvation in last night\u2019s better than expected Consumer Confidence number since both British Manufacturing Production and today\u2019s Halifax HPI come in negative.\u00a0 While … <\/p>\n

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