{"id":3980,"date":"2009-09-23T11:42:27","date_gmt":"2009-09-23T16:42:27","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3980"},"modified":"2009-09-23T11:42:27","modified_gmt":"2009-09-23T16:42:27","slug":"gbpusd-logs-solid-gains-following-boe-meeting","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/23\/gbpusd-logs-solid-gains-following-boe-meeting\/","title":{"rendered":"GBP\/USD Logs Solid Gains Following BoE Meeting"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable experienced a solid rally today after the BoE uniformly kept its QE package unchanged.\u00a0 Furthermore, the BoE didn\u2019t act on the idea of lowering the deposit rate.\u00a0 Hence, the central bank feels comfortable with its present level of liquidity.\u00a0 However, the BoE\u2019s wording certainly left the door open for further liquidity measures down the road.\u00a0 The Pound reacted positively to the neutral behavior of the BoE, registering large gains against both the Dollar and the Euro.\u00a0 Today\u2019s development should help stem the bleeding caused by Governor King\u2019s exceptionally dovish attitude.\u00a0 However, BBA Mortgage Approvals printed below expectations today, putting a damper on the positive outcome of the BoE meeting.\u00a0 The recovery in Britain\u2019s housing market has been the most impressive part of the nation\u2019s economic recovery.\u00a0 We saw the recovery in the Claimant Count Change level off last week as well.\u00a0 Therefore, today\u2019s strength in the Pound may not be long lasting if the recovery in British economic data slows down.\u00a0 Such a development would give BoE Governor King ample reason to move forward with additional liquidity measures.\u00a0 Furthermore, despite today\u2019s decision by the BoE, we believe it is the central bank\u2019s intention to keep the Pound comparatively weak in order to buoy its struggling services sector.\u00a0 Hence, we maintain our negative outlook on the GBP\/USD trend wise over the near to medium-term.<\/p>\n

As for the time being, the Cable received much needed support above previous September lows.\u00a0 Britain doesn\u2019t have any more economic data on tap for the rest of the week, leaving the GBP\/USD\u2019s performance in the hands of the G20 meeting and U.S. economic data.\u00a0 If the G20 summit goes smoothly and U.S. economic data outperforms like last week, the GBP\/USD may experience further strength to the topside.\u00a0 However, the currency pair must face multiple downtrend lines along with 9\/17, 9\/15, and 9\/11 highs.\u00a0 Therefore, the GBP\/USD has quite a few technical obstacles to overcome before having the opportunity to log more substantial gains.\u00a0 As for the downside, the GBP\/USD also has multiple uptrend lines serving as technical cushions.\u00a0 September lows continue to play an important role along with July lows and the highly psychological 1.60 level.\u00a0 Hence, the GBP\/USD has several strong supports and resistances to deal with before breaking out of its present trading band.\u00a0 Regardless, we maintain our negative outlook trend-wise regardless of immediate term strength as long as our topside barriers are in place.<\/p>\n

Present Price: 1.6409<\/p>\n

Resistances: 1.6417, 1.6434, 1.6456, 1.6469, 1.6485, 1.6505<\/p>\n

Supports: 1.6395, 1.6380, 1.6354, 1.6326, 1.6303<\/p>\n

Psychological: 1.60, 1.65<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/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 experienced a solid rally today after the BoE uniformly kept its QE package unchanged.\u00a0 Furthermore, the BoE didn\u2019t act on the idea of lowering the deposit rate.\u00a0 Hence, the central bank feels comfortable with its present level of liquidity.\u00a0 However, the BoE\u2019s wording certainly left the door open for … <\/p>\n

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