{"id":3539,"date":"2009-08-28T09:13:39","date_gmt":"2009-08-28T14:13:39","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3539"},"modified":"2009-08-28T09:13:39","modified_gmt":"2009-08-28T14:13:39","slug":"gbpusd-touches-bottom-on-our-2nd-tier-and-surges","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/28\/gbpusd-touches-bottom-on-our-2nd-tier-and-surges\/","title":{"rendered":"GBP\/USD Touches Bottom on our 2nd Tier and Surges"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has finally found bottom on our 2nd tier uptrend line, logging encouraging movements to the topside as the EUR\/GBP pulls back.\u00a0 Despite mixed economic data, investors are choosing to run with the better than expected GDP data from both Britain and the U.S.\u00a0 As we anticipated, the flush of British data is appeasing Cable investors by taking their minds off of the BOE\u2019s recent injection of liquidity into Britain\u2019s QE package.\u00a0 The fact Britain\u2019s GDP came in a basis point better than expectations shows the BOE\u2019s monetary shock may be more cautionary than preventative.\u00a0 However, Britain\u2019s stream of data comes with a red flag since CBI Realized Sales, Prelim Business Investment, and GfK Consumer Confidence were all weaker than analyst expectations yesterday.\u00a0 Hence, British consumption is still struggling to approach pre-crisis levels, and the sharp decline in business investment is certainly disconcerting.\u00a0 Therefore, we\u2019re not sure how long the Pound\u2019s resurgence will last, and the excitement surrounding an oversold Cable may fade quickly.\u00a0 On the other hand, the S&P futures are knocking on the door of their previous 2009 highs while gold surges well past $950\/oz.\u00a0 Since the Cable is positively correlated with both of these investment vehicles, the currency pair should be inclined to participate with any immediate-term run to the topside in either U.S. equities or precious metals.<\/p>\n

Technically speaking, the GBP\/USD must deal with our 3rd tier downtrend line and 8\/25 highs.\u00a0 After these technical barriers the currency pair will need to overcome its psychological 1.65 level, no easy feat.\u00a0 Furthermore, even if the Cable\u2019s upward momentum should carry the currency pair beyond these resistances, we can create many more downtrend lines if need be.\u00a0 This is the price the Cable must pay for experiencing such an aggressive pullback over the past month.\u00a0 Britain\u2019s mixed data won\u2019t cut it, and the GBP\/USD will need an impressive showing on all fronts to piece together a more meaningful rally.\u00a0 As for the downside, the Cable has a little more breathing room for now.\u00a0 The GBP\/USD has 8\/17 and 8\/27 lows along with our 1st and 2nd tier downtrend and 1st tier uptrend lines serving as technical cushions.<\/p>\n

Britain will keep the data train rolling next week by releasing its Halifax HPI, Manufacturing PMI, and Net Lending to Individuals on Tuesday.\u00a0 Additionally, we\u2019ll receive more economic data from the U.S., Japan, China, and the EU.\u00a0 Least we mention there is an ECB monetary policy decision on Thursday.\u00a0 Hence, today\u2019s volatility should carry over into the next trading week.<\/p>\n

Present Price: 1.6341<\/p>\n

Resistances: 1.6367, 1.6394, 1.6410, 1.6427, 1.6455<\/p>\n

Supports: 1.6337, 1.6302, 1.6277, 1.6261, 1.6247<\/p>\n

Psychological: 1.60, 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 finally found bottom on our 2nd tier uptrend line, logging encouraging movements to the topside as the EUR\/GBP pulls back.\u00a0 Despite mixed economic data, investors are choosing to run with the better than expected GDP data from both Britain and the U.S.\u00a0 As we anticipated, the flush of … <\/p>\n

Continue reading “GBP\/USD Touches Bottom on our 2nd Tier and Surges”<\/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-3539","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3539","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=3539"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3539\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}