{"id":3128,"date":"2009-07-29T11:23:22","date_gmt":"2009-07-29T16:23:22","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3128"},"modified":"2009-07-29T11:23:22","modified_gmt":"2009-07-29T16:23:22","slug":"gbpusd-bounces-between-our-1st-and-2nd-tier-uptrend-lines","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/29\/gbpusd-bounces-between-our-1st-and-2nd-tier-uptrend-lines\/","title":{"rendered":"GBP\/USD Bounces Between our 1st and 2nd Tier Uptrend Lines"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable slipped through our 2nd tier uptrend yesterday as the currency pair followed gold and the EUR\/USD lower following negative CBI realized sales data.\u00a0 However, the Pound continued to flex its muscles, and the GBP\/USD exerted its relative strength by bouncing off of our 1st tier uptrend line, avoiding an immediate-term protracted selloff like the EUR\/USD.\u00a0 The EUR\/GBP confirms the Pound\u2019s relative strength, crashing beneath its 7\/24 lows.\u00a0 It\u2019s interesting the GBP\/USD continues to experience a relative strength considering net lending to individuals came in even lower than expectations.\u00a0 Net lending to individuals is at an all-time low, and there have been no signs of a bottom yet.\u00a0 This can\u2019t bode well for British consumption, supported by the negative showings from CBI realized sales and last week\u2019s retail sales data.\u00a0 However, if tomorrow\u2019s HPI number comes in beneath reduced expectations, then the GBP\/USD may participate more to the downside.<\/p>\n

The GBP\/USD may be experiencing immediate-term strength since investors are still under the impression that the BOE has no intention to expand its $125 billion QE program.\u00a0 However, if economic data continues to come in mixed with a negative tint, the BOE may have no choice but to make another injection of liquidity.\u00a0 The Cable\u2019s relative strength also depends on the S&P\u2019s ability to hold strong above our 2nd tier uptrend line.\u00a0 If the S&P\u2019s uptrend gives way in the near future the GBP\/USD would likely follow U.S. equities lower due to their ultimate positive correlation.\u00a0 On a discouraging note, gold is declining at an alarming rate, a negative sign for the Cable\u2019s positive correlation.\u00a0 We\u2019ll keep an eye on the Cable\u2019s present divergence from gold and the EUR\/USD to see if a new norm develops.\u00a0 However, we\u2019ve witnessed brief divergences in the FX markets in the past only to watch the correlations lock back into place.<\/p>\n

Technically speaking, if our 1st tier uptrend line and intraday lows should fail, the next lines of defense would likely be 7\/22 and 7\/14 lows.\u00a0 The Cable is still in the thick of the dense June trading range, meaning there are solid walls on the bottom and topsides.\u00a0 As for the topside, the GBP\/USD needs to overcome our 2nd tier uptrend and 3rd tier downtrend lines along with 7\/28 highs.\u00a0 If the S&P futures continue to consolidate, we may witness an upward sloping consolidation in the GBP\/USD towards our 3rd tier downtrend line as its approaches an inflection point with our 2nd tier uptrend line.\u00a0 Once again, investors should tread cautiously since the large pullbacks in gold and the EUR\/USD raises a red flag.
\nPresent Price: 1.6439<\/p>\n

Resistances: 1.6441, 1.6467, 1.6500, 1.6542, 1.6555<\/p>\n

Supports: 1.6405, 1.6372, 1.6347, 1.6324, 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 slipped through our 2nd tier uptrend yesterday as the currency pair followed gold and the EUR\/USD lower following negative CBI realized sales data.\u00a0 However, the Pound continued to flex its muscles, and the GBP\/USD exerted its relative strength by bouncing off of our 1st tier uptrend line, avoiding an … <\/p>\n

Continue reading “GBP\/USD Bounces Between our 1st and 2nd Tier Uptrend Lines”<\/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-3128","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3128","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=3128"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3128\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}