{"id":3283,"date":"2009-08-10T10:36:58","date_gmt":"2009-08-10T15:36:58","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3283"},"modified":"2009-08-10T10:36:58","modified_gmt":"2009-08-10T15:36:58","slug":"gbpusd-sinks-towards-its-psychological-1-65-level","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/10\/gbpusd-sinks-towards-its-psychological-1-65-level\/","title":{"rendered":"GBP\/USD Sinks Towards its Psychological 1.65 Level"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable snapped after August 3rd lows failed to hold their ground.\u00a0 Friday\u2019s sell-side action was simply too much for the currency pair to handle, and the GBP\/USD has proceeded to flop towards the 1.66 area as we anticipated.\u00a0 There\u2019s continual downward pressure on GBP\/USD and EUR\/USD as FX investors head for safety.\u00a0 Meanwhile, the Pound is experiencing relative weakness in light of the BOE\u2019s $84 billion QE injection last week, as indicated by an upturn in the EUR\/GBP.\u00a0 However, even though further immediate-term losses in the GBP\/USD appear likely, the currency pair has a strong support zone approaching.\u00a0 The Cable has experienced immense consolidation around the 1.65 level in the past, and there\u2019s no reason to believe this behavior should change any time soon.\u00a0 Therefore, with 1.65 and our 1st and 2nd tier uptrend lines within reach, we believe any immediate-term losses could be halted by these technical cushions.\u00a0 In the meantime, crude and the S&P futures are consolidating above their respective psychological levels, $70\/bbl and 1000.\u00a0 As long as these investment vehicles hold strong, the Cable should forego any further technically significant setbacks.\u00a0 Meanwhile, investors should keep an eye on sell-side action to deem whether the Cable\u2019s pullback has the juice to drop below its aforementioned technical cushions.<\/p>\n

All is quiet on the data front until Britain releases its BRC Retail Sales Monitor and RICS House Price Balance numbers late Monday.\u00a0 A continual rise in housing prices could help solidify a temporary bottom in the Cable.\u00a0 Furthermore, investors will keep a close eye on key Chinese economic data.\u00a0 We could witness a broad-based Dollar depreciation if the Chinese numbers come in better than expected.\u00a0 China is helping pull the entire global economy out of the gutter, so outperformance in China could lift both the Pound and the Euro.\u00a0 Meanwhile, we\u2019ll monitor the Cable\u2019s correlation with the S&P futures since we witnessed a large appreciation of the Dollar on Friday despite stability in U.S. equities.\u00a0 Though we are not tossing the GBP\/USD\u2019s positive correlation with the S&P futures, we are certainly monitoring the situation closely.<\/p>\n

As for the upside, an encouraging development would be for the GBP\/USD to solidify above our 3rd tier uptrend line.\u00a0 However, the Cable has quite an uphill battle, including July 31st highs and our 2nd tier downtrend line.\u00a0 On the other hand, any climb above our top 1.6651 resistance could result in an additional immediate-term pop in the Pound.\u00a0 We maintain our negative immediate-term outlook on the GBP\/USD, though losses should be limited with strong supports on the horizon.\u00a0 The Cable\u2019s medium-term uptrend is still safe, and the currency pair would need a hefty technical reversal to alter its path.<\/p>\n

Present Price: 1.6570<\/p>\n

Resistances: 1.6572, 1.6591, 1.6612, 1.6637, 1.6651<\/p>\n

Supports: 1.6544, 1.6521, 1.6504, 1.6486, 1.6467<\/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 snapped after August 3rd lows failed to hold their ground.\u00a0 Friday\u2019s sell-side action was simply too much for the currency pair to handle, and the GBP\/USD has proceeded to flop towards the 1.66 area as we anticipated.\u00a0 There\u2019s continual downward pressure on GBP\/USD and EUR\/USD as FX investors head … <\/p>\n

Continue reading “GBP\/USD Sinks Towards its Psychological 1.65 Level”<\/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-3283","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3283","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=3283"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3283\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}