{"id":2946,"date":"2009-07-16T09:38:56","date_gmt":"2009-07-16T14:38:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2946"},"modified":"2009-07-16T09:38:56","modified_gmt":"2009-07-16T14:38:56","slug":"gbpusd-edges-towards-165-on-light-volume","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/16\/gbpusd-edges-towards-165-on-light-volume\/","title":{"rendered":"GBP\/USD Edges Towards 1.65 on Light Volume"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has deflected twice from our 3rd tier uptrend line as the psychological 1.65 level looms overhead.\u00a0 The Cable continues to underperform against the EUR\/USD, exemplified by an upturn in the EUR\/GBP.\u00a0 The Pound\u2019s relative weakness comes despite a better than expected CCC and average earnings data as compared to the Euro\u2019s disconcerted showing in economic sentiment and industrial production.\u00a0 Meanwhile, the Cable has fallen into a pattern of consolidation over the past 24 hours.\u00a0 The GBP\/USD is struggling with the dense June trading range as we anticipated.\u00a0 The Cable\u2019s large near-term technical obstacles could be adding to the Pound\u2019s relative weakness.\u00a0 Volume has been pretty tame to the upside.\u00a0 The GBP\/USD likely needs a shot of considerable buy-side volume to vault the currency pair past our 3rd tier uptrend line and 1.65.\u00a0 Even if the Cable should make it beyond these barriers, the GBP\/USD still needs to deal with our 3rd tier downtrend line and June highs.\u00a0 Hence, the Cable has its work cut out for it to the upside.<\/p>\n

Second quarter earnings continue to come in better than analyst expectations.\u00a0 JPMorgan joined the pack today by eclipsing analyst estimates with tech heavyweights IBM and Google reporting later on.\u00a0 Investors have been highly anticipating the 2nd quarter earnings season to get a better picture of the state of corporate performance among the global economic stabilization taking place data-wise.\u00a0 If earnings should continue to outperform estimates, the Dollar should continue to depreciate against both the Pound and Euro barring any external shock.\u00a0 Speaking of which, investors should monitor the CIT situation to see whether a bankruptcy would have systemic implications.\u00a0 Any large systemic shock could have a destabilizing effect on the GBP\/USD\u2019s uptrend.\u00a0 However, any CIT predictions at this point are merely speculation, and the concrete data and earnings of this week are spinning the GBP\/USD\u2019s story in a positive light.\u00a0 Investors should also keep an eye on the interaction of the S&P futures with their July 1st highs since the two investment vehicles are positive correlated.<\/p>\n

Present Price: 1.6430<\/p>\n

Resistances: 1.6459, 1.6485, 1.6522, 1.6548, 1.6589<\/p>\n

Supports: 1.6423, 1.6405, 1.6366, 1.6342, 1.6301<\/p>\n

Psychological: 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 has deflected twice from our 3rd tier uptrend line as the psychological 1.65 level looms overhead.\u00a0 The Cable continues to underperform against the EUR\/USD, exemplified by an upturn in the EUR\/GBP.\u00a0 The Pound\u2019s relative weakness comes despite a better than expected CCC and average earnings data as compared to … <\/p>\n

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