{"id":2889,"date":"2009-07-13T10:22:37","date_gmt":"2009-07-13T15:22:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2889"},"modified":"2009-07-13T10:22:37","modified_gmt":"2009-07-13T15:22:37","slug":"gbpusd-balances-despite-broad-based-weakness-of-pound","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/13\/gbpusd-balances-despite-broad-based-weakness-of-pound\/","title":{"rendered":"GBP\/USD Balances Despite Broad-Based Weakness of Pound"},"content":{"rendered":"

By Fast Brokers<\/span> – The Cable appears to be bottoming out above July 8th lows as the currency pair avoids another retest of the psychological 1.60 level.\u00a0 However, as we anticipated, the optimism surrounding the BoE holding its level of QE steady was short-lived.\u00a0 Thursday\u2019s rally in the GBP\/USD stalled after the currency pair failed to receive noteworthy volume on the buy-side.\u00a0 As a result, the Cable has dipped back into risky territory with our 2nd and 3rd tier downtrend lines and July highs bearing overhead.\u00a0 Technical keys for the Cable to the downside will be staying above the psychological 1.60 level, July lows, and our 1st tier uptrend line.\u00a0 Regardless of the downward pressure in the Cable, the 1.58-1.61 area should continue to be a heavy-handed trading zone.\u00a0 Therefore, it would likely take a large pullback couple with abnormally high volume to break the Cable\u2019s near-term support system.<\/p>\n

The Pound is experiencing broad-based weakness after Britain\u2019s Halifax HPI and manufacturing production data points disappointed analysts.\u00a0 Last week\u2019s data continues a theme of economic setbacks in Britain after around six weeks of solid data releases from the U.K.\u00a0 Therefore, it seems the tables have turned, and the EUR\/GBP is finally building some substantial momentum to the upside.\u00a0 However, despite the negative weight dragging down on the Cable, we wouldn\u2019t be surprised to witness further stabilization.<\/p>\n

News is a little light today, and investors are likely to take a deep breath before tomorrow\u2019s large dose of economic data.\u00a0 Britain will begin with some important housing numbers late Monday, followed by the CPI and RPI early Tuesday.\u00a0 Investors are expecting the CPI to continue its contraction with a reading of 1.8%.\u00a0 Any number below 1.8% could spark the fear of deflation, resulting in a sizable pullback in the GBP\/USD.\u00a0 In addition from the British data points, the U.S. will release retail sales, PPI, and business inventories on Tuesday.\u00a0 We also can\u2019t forget that the 2nd quarter earnings season is just getting started.\u00a0 The earnings reports should be market moves if the numbers surprise in either direction.\u00a0 As a result, there should be a strong correlation between the Cable and U.S. equities for the near-term.<\/p>\n

Present Price: 1.6130<\/p>\n

Resistances: 1.6152, 1.6212, 1.6264, 1.6314, 1.6346<\/p>\n

Supports: 1.6129, 1.6079, 1.6026, 1.5978, 1.5919<\/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 appears to be bottoming out above July 8th lows as the currency pair avoids another retest of the psychological 1.60 level.\u00a0 However, as we anticipated, the optimism surrounding the BoE holding its level of QE steady was short-lived.\u00a0 Thursday\u2019s rally in the GBP\/USD stalled after the currency pair failed … <\/p>\n

Continue reading “GBP\/USD Balances Despite Broad-Based Weakness of Pound”<\/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-2889","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2889","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=2889"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2889\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}