{"id":3651,"date":"2009-09-04T11:38:03","date_gmt":"2009-09-04T16:38:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3651"},"modified":"2009-09-04T11:38:03","modified_gmt":"2009-09-04T16:38:03","slug":"gbpusd-stabilizes-above-our-3rd-tier-uptrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/04\/gbpusd-stabilizes-above-our-3rd-tier-uptrend-line\/","title":{"rendered":"GBP\/USD Stabilizes above our 3rd Tier Uptrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The GBP\/USD is stabilizing further above our 3rd tier uptrend line, yet can manage to break free of our 2nd tier downtrend line.\u00a0 These two trend lines are colliding soon, and we notice multiple inflection points occurring in the EUR\/USD.\u00a0 Hence, the two currency pairs are implying there could be a jolt of volatility soon.\u00a0 However, trading should be light today since many traders are taking a long weekend for the Labor Day holiday.\u00a0 Meanwhile, the Pound continues to enjoy a relative strength as the EUR\/GBP slides lower.\u00a0 Investors were relieved by the solid Services PMI number yesterday after the weak economic data combined with the BOE\u2019s monetary shock.\u00a0 However, a higher than expected U.S. headline Unemployment Rate is capping movements to the topside.\u00a0 The S&P futures are back above 1000, yet we expect the psychological zone to keep equities in check until there is a technically significant movement in either direction.\u00a0 The S&P\u2019s gravitation towards 1000 is keeping the GBP\/USD locked within a reasonable trading range right now.<\/p>\n

Britain\u2019s Halifax HPI release was pushed back to Monday, and we expect the data to come in at or above analyst expectations since the UK\u2019s housing market is holding up well.\u00a0 We expect market volatility could increase next week.\u00a0 Although we\u2019ve been chomping at the bit for some volatility, a key technical movement may finally occur with the Labor Day holiday marking the official end of summer.\u00a0 Additionally, we\u2019ll receive some key economic data throughout the week, most notably China\u2019s Industrial Production number and a BOE monetary policy decision on Thursday.\u00a0 There has been a lot of chatter concerning whether China\u2019s economy is slowing down, and the wave of data on Thursday may help clear the air.\u00a0 Meanwhile, investors will be keen to see how the BOE addresses its alternative liquidity program.\u00a0 With inflection points approaching in both the GBP\/USD and EUR\/USD, the ingredients are on the table to make a volatile week.<\/p>\n

Technically speaking, although the GBP\/USD has experienced some encouraging strength lately, the currency pair still has our 2nd and 3rd tier downtrend lines to deal with.\u00a0 Our 3rd tier downtrend line is a key for attaining more sizable gains towards 1.65 and August 21st highs.\u00a0 Furthermore, as long as our 3rd tier downtrend line bears overhead a medium-term downtrend line will weigh on the currency pair.\u00a0 A strong downward force remains with analysts cautioning about overbought equity market.\u00a0 Should the S&P futures opt to make a large leg down the GBP\/USD would likely follow suit.\u00a0 As for the downside, the GBP\/USD has built a little breathing room, most notably our 2nd and 3rd tier uptrend lines and September lows.\u00a0 Additionally, even if our uptrend liens should fail the currency pair has the highly psychological 1.60 level to fall back on.\u00a0 We will have to wait and see how the next week unfolds since it seems investors are content heading into the holiday weekend with a consolidative pattern.<\/p>\n

Present Price: 1.6330<\/p>\n

Resistances: 1.6360, 1.6376, 1.6408, 1.6443, 1.6469, 1.6520<\/p>\n

Supports: 1.6324, 1.6300, 1.6267, 1.6239, 1.6212<\/p>\n

Psychological: 1.65, 1.60<\/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 stabilizing further above our 3rd tier uptrend line, yet can manage to break free of our 2nd tier downtrend line.\u00a0 These two trend lines are colliding soon, and we notice multiple inflection points occurring in the EUR\/USD.\u00a0 Hence, the two currency pairs are implying there could be a … <\/p>\n

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