{"id":3761,"date":"2009-09-10T12:41:36","date_gmt":"2009-09-10T17:41:36","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3761"},"modified":"2009-09-10T12:41:36","modified_gmt":"2009-09-10T17:41:36","slug":"gbpusd-enjoys-inaction-from-the-boe","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/10\/gbpusd-enjoys-inaction-from-the-boe\/","title":{"rendered":"GBP\/USD Enjoys Inaction from the BOE"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has reached the lid of the 8\/13-8\/21 trading range after the BOE kept its alternative liquidity package as is.\u00a0 Investors shrugged off a weaker than expected Halifax HPI number, instead opting to give the Pound a relative strength as highlighted by the large pullback in the EUR\/GBP.\u00a0 The Halifax number is a bit surprising since Britain\u2019s housing data has been stellar lately.\u00a0 Investors may take more notice if we receive another setback in housing data in the near future.\u00a0 Focus will return to the East tonight with China set to release a flood of economic data including Industrial Production.\u00a0 Therefore, the FX markets should remain volatile over the remainder of the week since the longevity of the growth story in China has been brought into question lately.\u00a0 Since China has been leading the charge of the global economic recovery, any setback in China\u2019s economic data late Thursday PST could place some downward pressure on the Cable.\u00a0 However, since the Cable and EUR\/USD experienced technical breakouts on Tuesday, we believe China\u2019s economic data will likely come in ahead of expectations and help fuel the GBP\/USD\u2019s rally.<\/p>\n

The GBP\/USD is looking to get above the lid of the 8\/13-8\/21 range and create some more breathing room between present price and the psychological 1.65 level.\u00a0 Regardless, the Cable still has quite a bit of work to do to the topside due to the BOE\u2019s large injection of liquidity a few weeks ago.\u00a0 The pullback from August highs paved a bumpy road for the uptrend, whereas the EUR\/USD broke free of its August highs on Tuesday\u2019s technical movement.\u00a0 Though lying in the distance, our new 2nd tier downtrend line should serve as a key barometer regarding the health of the GBP\/USD\u2019s medium-term uptrend.\u00a0 Since our 2nd tier downtrend line runs through August highs, an eclipse of the 2nd tier should indicate a large breakout to the topside.\u00a0 However, we will have to see the data from China before we get ahead of ourselves.\u00a0 Britain will also release its PPI data tomorrow and investors are expecting producer prices to grow by 0.9%.\u00a0 If data should disappoint over the next 24 hours, the GBP\/USD has technical cushions in our three uptrend lines along with intraday lows and the psychological 1.65 level.\u00a0 We maintain our bullish near-term outlook on the GBP\/USD regardless of any immediate-term pullbacks due to the overwhelming bullish message delivered on Tuesday.<\/p>\n

Present Price: 1.6608<\/p>\n

Resistances: 1.6608, 1.6635, 1.6657, 1.6668, 1.6701, 1.6722<\/p>\n

Supports: 1.6589, 1.6570, 1.6552, 1.6511, 1.6481<\/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 reached the lid of the 8\/13-8\/21 trading range after the BOE kept its alternative liquidity package as is.\u00a0 Investors shrugged off a weaker than expected Halifax HPI number, instead opting to give the Pound a relative strength as highlighted by the large pullback in the EUR\/GBP.\u00a0 The Halifax … <\/p>\n

Continue reading “GBP\/USD Enjoys Inaction from the BOE”<\/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-3761","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3761","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=3761"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3761\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}