{"id":3042,"date":"2009-07-22T12:17:02","date_gmt":"2009-07-22T17:17:02","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3042"},"modified":"2009-07-22T12:17:02","modified_gmt":"2009-07-22T17:17:02","slug":"gbpusd-stabilizes-despite-disappointing-cbi-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/22\/gbpusd-stabilizes-despite-disappointing-cbi-data\/","title":{"rendered":"GBP\/USD Stabilizes Despite Disappointing CBI Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is climbing back above our 2nd tier uptrend line despite disappointing CBI industrial new orders data.\u00a0 Today\u2019s CBI data is a bit disconcerting because it counters the gradual improvement since March.\u00a0 In fact, today\u2019s reading of -59 is worse than March\u2019s -58.\u00a0 Present stabilization counters a pullback resulting from a bleak report from the IMF concerning the state of Britain\u2019s budget balance amid spiraling injections of liquidity.\u00a0 Investors are also reacting positively to the BOE minutes released earlier showing the central bank currently has no intention of adding onto its $125 Billion QE program.\u00a0 Hence, the BOE could be thinking about the future by reigning in spending.\u00a0 On the other hand, the BOE also revealed it plans on increasing the reserve requirements of financials, denting future revenue.\u00a0 Taking all of this into account, the Cable is proving resilient to the downside, and investors are still encouraged about the concept of an economic recovery.\u00a0 Although the medium-term is filled with question marks, the immediate-term momentum remains in the bulls corner for now.<\/p>\n

The GBP\/USD is in the thick of June\u2019s trading range, which we predicted could be a tough zone to break free of.\u00a0 The 1.65 psychological area proved to be a worthy adversary to the upside, though the uptrend lines are holding firm.\u00a0 The topside obstacles are clear:\u00a0 1.65, July 20th highs, and our 3rd tier downtrend line.\u00a0 If the Cable can dart past these barriers a retest of July highs is likely.\u00a0 Britain will release retail and BBS mortgage approvals data tomorrow.\u00a0 We believe the mortgage approvals number could have a larger impact on the Cable than retail sales.\u00a0 Mortgage approvals are at an important technical juncture.\u00a0 Investors are expecting a slight increase from the last release, while a much higher\/lower than expected number could result in a sizable appreciation\/depreciation of the Pound.\u00a0 In addition to tomorrow data, the interaction of the S&P futures with 950 and yearly highs should have a strong influence on the path of the Dollar.\u00a0 Should the S&P breakout to the upside the GBP\/USD would likely follow suit to its 3rd tier downtrend line.<\/p>\n

As with the EUR\/USD, the GBP\/USD has an upward sloping near-term trend with hefty support to the downside.\u00a0 Therefore, near-term momentum is tilted towards the bulls\u2019 corner for the time being.\u00a0 Looking at the downside, the Cable has our 2nd and 3rd tier uptrend lines and July 17th lows should sentiment turn sour.\u00a0 Hence, there are quite a few cushions on the bottom-end to weather a storm should it strike.<\/p>\n

Present Price: 1.6402<\/p>\n

Resistances: 1.6405, 1.6441, 1.6467, 1.6500, 1.6542<\/p>\n

Supports: 1.6372, 1.6347, 1.6324, 1.6301, 1.6265<\/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 is climbing back above our 2nd tier uptrend line despite disappointing CBI industrial new orders data.\u00a0 Today\u2019s CBI data is a bit disconcerting because it counters the gradual improvement since March.\u00a0 In fact, today\u2019s reading of -59 is worse than March\u2019s -58.\u00a0 Present stabilization counters a pullback resulting from … <\/p>\n

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