{"id":3476,"date":"2009-08-25T09:20:44","date_gmt":"2009-08-25T14:20:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3476"},"modified":"2009-08-25T09:20:44","modified_gmt":"2009-08-25T14:20:44","slug":"gbpusds-slide-bottoms-before-817-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/25\/gbpusds-slide-bottoms-before-817-lows\/","title":{"rendered":"GBP\/USD’s Slide Bottoms Before 8\/17 Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is recovering above 8\/17 lows as investors headed to the Dollar with uncertainty rising in reaction to the words of caution from economists around the world.\u00a0 The Pound has been under considerable relative weakness the last week.\u00a0 Investors continue to punish the Pound amidst the confusion surrounding the BOE\u2019s decision to inject 50 billion more into its QE package, not to mention King\u2019s vote to tack on an addition 25 billion to the tab.\u00a0 However, the Pound may experience a reversal in fortune with some key British economic data on the way.\u00a0 Britain hasn\u2019t released very much economic data since the BOE\u2019s monetary policy decision, so investors seem to have forgotten that British economic data was beating analyst expectations before the BOE delivered its monetary shock.\u00a0 In fact, analysts were caught a bit off-guard by the BOE\u2019s decision since Britain\u2019s data had been encouraging.\u00a0 Our reaction to the BOE\u2019s policy decision was one of belief that the central bank is attempting to devalue the Pound to keep currency from getting ahead of economic growth so as not to place British companies at a competitive disadvantage.\u00a0 Today\u2019s BBA Mortgage Approvals number beat analyst expectations, supporting the argument that Britain\u2019s housing market is in the midst of a remarkable recovery.\u00a0 Investors also shouldn\u2019t forget Britain\u2019s employment market has made vast improvements from the height of the economic downturn.<\/p>\n

Though Britain won\u2019t release anymore economic data today, we will receive Nationwide HPI and CBI Realized Sales on Thursday followed by Revised GDP on Friday.\u00a0 All of these data points are normally market-movers, allowing investors to value the Pound more on fundamentals than the negative psychological impact of the BOE\u2019s injection of liquidity.\u00a0 We expect Britain\u2019s data to continue to outperform, re-energizing the Pound and sending the Cable back towards the lid of its 8\/13-8\/21 trading range.\u00a0 However, if British and U.S. economic data underperforms the GBP\/USD could test the patience of 8\/17 lows.\u00a0 In the meantime, 1.65 should continue to have a psychological impact on the Cable as the currency pair waves between 1.64 and 1.66.<\/p>\n

Present Price: 1.6399<\/p>\n

Resistances: 1.6407, 1.6430, 1.6458, 1.6508, 1.6544<\/p>\n

Supports: 1.6380, 1.6366, 1.6342, 1.6311, 1.6278<\/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 recovering above 8\/17 lows as investors headed to the Dollar with uncertainty rising in reaction to the words of caution from economists around the world.\u00a0 The Pound has been under considerable relative weakness the last week.\u00a0 Investors continue to punish the Pound amidst the confusion surrounding the BOE\u2019s … <\/p>\n

Continue reading “GBP\/USD’s Slide Bottoms Before 8\/17 Lows”<\/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-3476","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3476","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=3476"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3476\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}