{"id":3555,"date":"2009-08-31T10:25:44","date_gmt":"2009-08-31T15:25:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3555"},"modified":"2009-08-31T10:25:44","modified_gmt":"2009-08-31T15:25:44","slug":"gbpusd-finds-support-in-our-3rd-tier-uptrend-line-once-again","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/31\/gbpusd-finds-support-in-our-3rd-tier-uptrend-line-once-again\/","title":{"rendered":"GBP\/USD Finds Support in our 3rd Tier Uptrend Line Once Again"},"content":{"rendered":"

By Fast Brokers<\/strong> – The GBP\/USD is finding support in our 2nd tier turned 3rd tier uptrend line once again as the Greenback depreciates across the board.\u00a0 The Dollar\u2019s broad-based depreciation is a bit odd considering the crude and the S&P futures are moving lower today in reaction to the SCI\u2019s freefall during the Asian trading session.\u00a0 Since we haven\u2019t witnessed any discernable deterioration in economic data today, we are attributing the S&P\u2019s decline as a psychological reaction to the downturn in the SCI.\u00a0 Hence, investors should refrain from reading too far into the S&P\u2019s present pullback.\u00a0 We can tell you theme today is one of a weaker Dollar, highlighted by large gains in the EUR\/USD and losses in the USD\/JPY.\u00a0 Meanwhile, gold is caught in the headwinds with little sense of direction.<\/p>\n

Investors are becoming more comfortable with the GBP\/USD after Britain\u2019s GDP number came in one basis point above expectations on Friday.\u00a0 However, investors should keep in mind the rest of Britain\u2019s data was disappointing, including disconcerting outlooks for both consumer sentiment and business investment.\u00a0 As a result, the Pound continues to experience a relative weakness, signified by the incessant rise of the EUR\/GBP.\u00a0 Britain will have a chance to redeem itself tomorrow when it releases its Halifax HPI, Manufacturing PMI and Net Lending to Individuals data points.\u00a0 While we expect the Halifax data to impress since British housing data has been a bright spot lately, the more significant event will be to see whether Britain\u2019s Manufacturing PMI can expand on its return to growth.\u00a0 If so, the Pound may receive a boost of buy-side activity.<\/p>\n

Technically speaking, the GBP\/USD must deal with our 2nd and 3rd tier downtrend lines along with 8\/28 highs.\u00a0 After these technical barriers, the currency pair should have a clear shot at its psychological 1.65 level.\u00a0 However, 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 our 2nd and 3rd tier uptrend lines along with 8\/27 lows to fall back on.\u00a0 If these technical cushions don\u2019t hold, the GBP\/USD should experience considerable support in its psychological 1.60 level.\u00a0 Meanwhile, investors should take note that our 3rd tier uptrend line is reaching an inflection point with our 1st and 2nd tier downtrend lines over the next 24-48 hours, indicating a forthcoming area of high volatility.\u00a0 The multiple inflection points are not surprising considering the important British data hitting the wire soon.<\/p>\n

Present Price: 1.6277<\/p>\n

Resistances: 1.6294, 1.6313, 1.6340, 1.6379, 1.6416<\/p>\n

Supports: 1.6251, 1.6212, 1.6181, 1.6146, 1.6119<\/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 GBP\/USD is finding support in our 2nd tier turned 3rd tier uptrend line once again as the Greenback depreciates across the board.\u00a0 The Dollar\u2019s broad-based depreciation is a bit odd considering the crude and the S&P futures are moving lower today in reaction to the SCI\u2019s freefall during the Asian … <\/p>\n

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