{"id":3790,"date":"2009-09-14T10:51:18","date_gmt":"2009-09-14T15:51:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3790"},"modified":"2009-09-14T10:51:18","modified_gmt":"2009-09-14T15:51:18","slug":"gbpusd-bounces-off-our-2nd-tier-uptrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/14\/gbpusd-bounces-off-our-2nd-tier-uptrend-line\/","title":{"rendered":"GBP\/USD Bounces off our 2nd Tier Uptrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The GBP\/USD is finding strength in our 2nd tier uptrend line, avoiding a retest of the psychological 1.65 level following recent weakness.\u00a0 Though we saw a slight uptick in volume to the downside on Friday, we don\u2019t believe this pullback carries much weight.\u00a0 We\u2019ve seen technical breakouts to the topside in the EUR\/USD and gold coupled with key declines in the USD\/JPY.\u00a0 Hence, it\u2019s clear investors continue to look unfavorably upon the Dollar, which bodes well for the Pound even if investors are turned off by the BoE\u2019s taste for liquidity.\u00a0 The Pound will be tested further this week since we will receive key British economic data throughout the week.\u00a0 Tomorrow Britain will release its CPI and RPI data along with the Inflation Report Hearings.\u00a0 We will be paying particularly close attention to tomorrow\u2019s pricing data since Friday\u2019s Input PPI registered a surprising 2.2% growth rate.\u00a0 The Pound could experience a round of relative strength if the return to growth in Britain\u2019s pricing data accelerates.\u00a0 Surprisingly positive pricing data tomorrow could lead investors to speculate that the BoE will keep any planned injections of liquidity on hold.\u00a0 However, unflattering pricing data could have the opposite effect and keep the Pound lodged within its relative weakness.\u00a0 Speaking of which, investors should keep a close eye on the EUR\/GBP.\u00a0 The currency pair has received a wave of buying, and is currently staring down August\/September highs.\u00a0 If the EUR\/GBP surpasses these previous highs and breaks out to the topside, this would be a clear indication that Britain\u2019s data will fail to impress this week.<\/p>\n

Technically speaking, momentum in the GBP\/USD remains to the topside due to last week\u2019s large breakouts in the Cable\u2019s positive correlations.\u00a0 Meanwhile, our 1st tier uptrend line is reaching an inflection point with our 1st tier downtrend line.\u00a0 Hence, we anticipate a possible pickup in volatility this week as economic data floods the FX market.\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 As for the downside, the GBP\/USD has our 1st and 2nd tier uptrend lines along with the psychological 1.65 level to fall back on.\u00a0 Furthermore, the meat of the 8\/10-8\/24 trading range should prove to be both a reliable defense and obstacle due to its significance this summer.\u00a0 Hence, investors should keep a close eye on the lid and the bottom of this trading band.<\/p>\n

Present Price: 1.6570<\/p>\n

Resistances: 1.6570, 1.6589, 1.6608, 1.6635, 1.6661<\/p>\n

Supports: 1.6552, 1.6519, 1.6491, 1.6475, 1.6455, 1.6431<\/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 GBP\/USD is finding strength in our 2nd tier uptrend line, avoiding a retest of the psychological 1.65 level following recent weakness.\u00a0 Though we saw a slight uptick in volume to the downside on Friday, we don\u2019t believe this pullback carries much weight.\u00a0 We\u2019ve seen technical breakouts to the topside in … <\/p>\n

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