{"id":3386,"date":"2009-08-18T10:47:55","date_gmt":"2009-08-18T15:47:55","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3386"},"modified":"2009-08-18T10:47:55","modified_gmt":"2009-08-18T15:47:55","slug":"gbpusd-climbs-past-1-65-after-pricing-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/18\/gbpusd-climbs-past-1-65-after-pricing-data\/","title":{"rendered":"GBP\/USD Climbs Past 1.65 after Pricing Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has popped nicely from Monday lows and is trading back above the psychological 1.65 level.\u00a0 Both Britain\u2019s CPI and RPI indexes came in 3 basis points ahead of analyst expectations, contradicting fear over deflation caused by the BOE\u2019s recent injection of liquidity to its QE package.\u00a0 The Pound is experiencing considerable relative strength today in reaction to the data since investors punished Britain\u2019s currency in reaction to the BOE\u2019s actions.\u00a0 The improvement in pricing gives investors hope that the BOE may cap its QE package from here on out.\u00a0 Furthermore, the liquidity will only improve inflation, putting the BOE in a position to tighten liquidity sooner rather than later should the global economy continue to recover.<\/p>\n

Despite today\u2019s recovery in the GBP\/USD, the currency pair still faces challenging near-term obstacles to the upside.\u00a0 The Cable must deal with the lid of its 7\/20-7\/28 trading range, our 3rd tier downtrend line as well as 8\/13 highs.\u00a0 Additionally, the S&P futures are experiencing sizable downward pressure due to today\u2019s weak pricing and housing numbers along with last week\u2019s disappointing consumption data.\u00a0 Hence, the GBP\/USD\u2019s barriers may prove challenging should the S&P futures not turn around due to their positive correlation.\u00a0 On the plus side, the Cable is back above our 1.65 and our 2nd tier uptrend line, meaning the Pound should prove resilient if U.S. equities continue their slide.\u00a0 Tomorrow Britain will release CBI Industrial Order Expectations along with the MPC\u2019s Meeting Minutes.\u00a0 Should these data points impress investors, the GBP\/USD could continue to experience some immediate-term upward mobility.<\/p>\n

Present Price: 1.6533<\/p>\n

Resistances: 1.6537, 1.6562, 1.6593, 1.6611, 1.6633<\/p>\n

Supports: 1.6505, 1.6482, 1.6455, 1.6428, 1.6398<\/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 popped nicely from Monday lows and is trading back above the psychological 1.65 level.\u00a0 Both Britain\u2019s CPI and RPI indexes came in 3 basis points ahead of analyst expectations, contradicting fear over deflation caused by the BOE\u2019s recent injection of liquidity to its QE package.\u00a0 The Pound is … <\/p>\n

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