{"id":2904,"date":"2009-07-14T10:47:34","date_gmt":"2009-07-14T15:47:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2904"},"modified":"2009-07-14T10:47:34","modified_gmt":"2009-07-14T15:47:34","slug":"gbpusd-bounces-and-fades","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/14\/gbpusd-bounces-and-fades\/","title":{"rendered":"GBP\/USD Bounces and Fades"},"content":{"rendered":"

By Fast Brokers<\/span> – The Cable continued to propel from our 1st tier downtrend line, gaining traction to the upside after Britain released data showing surveyors saw housing prices recovering at an encouraging rate.\u00a0 Additionally, although Britain\u2019s CPI was a discouraging 1.8%, the number met analyst expectations and the Pound is being rewarded accordingly.\u00a0 Despite the Cable\u2019s recent stability, the rally is fading in the face of insufficient buy-side volume, turning course after failing to surpass July 9th highs and our 3rd tier downtrend line.\u00a0 Could it be that another tight trading range is forming, similar to the one experienced in June?\u00a0 Such a progression would fall in line with the concept of summer doldrums.\u00a0 Correlation wise, the S&P and crude futures have recovered to comfortable levels, avoiding another large selloff for the time being.\u00a0 Therefore, the S&P and crude could be in for more consolidation as well with investors torn between mixed economic data and earnings reports, supporting a new trading zone for the GBP\/USD.<\/p>\n

British economic data is not done for the week, with the new claimant count change (CCC) and average earnings index on deck tomorrow morning.\u00a0 Analysts are expecting a slight increase in the CCC from 39.3k to 41.4k.\u00a0 However, we anticipate the CCC will continue its brisk decline and comfortably beat expectations.\u00a0 A lower than anticipated CCC number would likely result additional stability to the GBP\/USD and provide relative near-term strength to the Pound across the board.\u00a0 The key near-term obstacles for the Cable continue to be July 9th highs and our 3rd tier downtrend line.\u00a0 Meanwhile, the currency pair has stacked additional cushions to the downside via its recent performance, most notably our 1st tier uptrend line, 2nd tier downtrend line, July 13th lows and the psychological 1.60 level.\u00a0 Therefore, it would take a large movement on abnormally high volume to send the Cable spinning back into its downtrend.\u00a0 Altogether, the GBP\/USD is still searching for its near\/medium-term directional identity, and it doesn\u2019t seem the confusion will be solved today.<\/p>\n

Present Price: 1.6276<\/p>\n

Resistances: 1.6314, 1.6346, 1.6380, 1.6433, 1.6470<\/p>\n

Supports: 1.6255, 1.6211, 1.6168, 1.6127, 1.6077<\/p>\n

Psychological: 1.60, 1.65<\/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 continued to propel from our 1st tier downtrend line, gaining traction to the upside after Britain released data showing surveyors saw housing prices recovering at an encouraging rate.\u00a0 Additionally, although Britain\u2019s CPI was a discouraging 1.8%, the number met analyst expectations and the Pound is being rewarded accordingly.\u00a0 Despite … <\/p>\n

Continue reading “GBP\/USD Bounces and Fades”<\/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-2904","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2904","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=2904"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2904\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}