{"id":2865,"date":"2009-07-09T10:22:23","date_gmt":"2009-07-09T15:22:23","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2865"},"modified":"2009-07-09T10:22:23","modified_gmt":"2009-07-09T15:22:23","slug":"gbpusd-rallies-strongly-after-boe-keeps-qe-level-unchanged","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/09\/gbpusd-rallies-strongly-after-boe-keeps-qe-level-unchanged\/","title":{"rendered":"GBP\/USD Rallies Strongly after BoE Keeps QE Level Unchanged"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is posting a solid rally Thursday after the BoE kept its 125 billion Pound quantitative easing plan unchanged.\u00a0 Though many analysts were expecting a 25 billion bump up this time around, we warned that these rumors may have been unsubstantiated.\u00a0 Investors are taking the BoE\u2019s inaction as a sign of confidence in the British economy.\u00a0 However, we believe the central bank just wants to see how the remainder of the 125 billion Pounds fares as its injected into the economy over the next month or so.\u00a0 Therefore, we believe the optimism resulting from today\u2019s BoE meeting may be short-lived.<\/p>\n

Regardless, the Cable has received a much-needed boost above the psychological 1.60- level for the immediate-term, and is currently testing our 2nd tier downtrend line.\u00a0 We haven\u2019t seen any abnormally large volume to the upside thus far today, so it will be interesting to watch how the GBP\/USD interacts with our 2nd tier downtrend line.\u00a0 Other than the BoE meeting, investors are buying up the Pound after Britain announced a narrower than anticipated Trade Balance deficit.\u00a0 Even if the Cable should break through our 2nd tier downtrend line large barriers remain, including our 3rd tier uptrend and downtrend lines and the psychological 1.65 level.\u00a0 However, it would be encouraging for bulls to see the Cable settle back in the middle of the June trading range.\u00a0 Despite the positive developments made in the Cable over the past 24 hours, we believe the downtrend remains the prevalent force in this picture as with the EUR\/USD.\u00a0 We would need to see a large, technical reversal for us to alter our present negative outlook.<\/p>\n

Meanwhile, all eyes are on U.S. equities and the 2nd quarter earnings season.\u00a0 Alcoa kicked off the 2nd quarter with lower than expected losses as a result of effective cost-cutting by management.\u00a0 Investors are encouraged by the better than anticipated number from Alcoa, and are stabilizing the S&P futures in reaction.\u00a0 However, earnings season doesn\u2019t really heat up until next week, so it\u2019s too early to judge how U.S. corporate earnings will fare as an entity.\u00a0 Although Britain will release its Input PPI tomorrow, the GBP\/USD should remain positively correlated with U.S. equities trend-wise since the S&P futures are trading near important supports.\u00a0 Furthermore, investors should keep in mind that British economic data has come in mixed this week.\u00a0 Today\u2019s lower than expected trade balance deficit is countered by negative numbers concerning manufacturing and housing.\u00a0 Therefore, the pressure to the downside remains.<\/p>\n

Present Price: 1.6242<\/p>\n

Resistances: 1.6264, 1.6287, 1.6321, 1.6367, 1.6428<\/p>\n

Supports: 1.6210, 1.6152, 1.6129, 1.6079, 1.6026<\/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 posting a solid rally Thursday after the BoE kept its 125 billion Pound quantitative easing plan unchanged.\u00a0 Though many analysts were expecting a 25 billion bump up this time around, we warned that these rumors may have been unsubstantiated.\u00a0 Investors are taking the BoE\u2019s inaction as a sign … <\/p>\n

Continue reading “GBP\/USD Rallies Strongly after BoE Keeps QE Level Unchanged”<\/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-2865","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2865","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=2865"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2865\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}