{"id":4002,"date":"2009-09-24T10:18:55","date_gmt":"2009-09-24T15:18:55","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4002"},"modified":"2009-09-24T10:18:55","modified_gmt":"2009-09-24T15:18:55","slug":"gbpusd-collapses-beneath-september-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/24\/gbpusd-collapses-beneath-september-lows\/","title":{"rendered":"GBP\/USD Collapses Beneath September Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has capsized beneath previous September lows on heavy sell-side volume.\u00a0 BoE Governor King didn\u2019t take long to return to his dovish stance.\u00a0 Today Governor King confirmed our suspicions that the BoE is supportive of a weak Pound in order to make its service and manufacturing goods more attractive to international demand.\u00a0 Therefore, it seems the BoE will continue to take actions necessary to keep the Pound weak in order to boost demand for its goods and services while buoying Britain\u2019s employment market.\u00a0 King\u2019s comments are rocking the Pound once again, sending the GBP\/USD tumbling while shooting the EUR\/GBP closer to par.\u00a0 Our near-term outlook on the GBP\/USD has been justified, and the GBP\/USD is on the brink of sacrificing some important technical supports.\u00a0 The Cable is quickly approaching July 2008 lows and the highly psychological 1.60 level.\u00a0 Though 1.60 should ideally serve as a heft psychological cushion, the Cable\u2019s uptrend lines are wearing thin.\u00a0 Therefore, the GBP\/USD only has a few more strings to pull before registering even more significant losses than we\u2019ve witnessed thus far.\u00a0 However, before we get ahead of ourselves, investors should key in on our 1st-3rd uptrend lines along with 1.60.<\/p>\n

Meanwhile, U.S. and EU economic data releases certainly aren\u2019t helping the GBP\/USD\u2019s uptrend.\u00a0 The S&P futures are taking a hit today after Existing Home Sales registered a surprising deterioration.\u00a0 Additionally, Germany\u2019s Ifo Business Climate came in shy of analyst expectations, joining Wednesday\u2019s negatively mixed EU PMI releases.\u00a0 Looking to commodities, crude has crashed below our 1st tier uptrend line and gold has darted beneath $1000\/oz.\u00a0 While the S&P futures, gold, and the EUR\/USD have some more uptrend lines to salvage the near-term uptrend, the overall downtrend of the Dollar is facing a considerable challenge.\u00a0 Therefore, investors should eye important technical supports in all of the Cable\u2019s correlations.\u00a0 Though Britain won\u2019t be releasing any more econ data this week, we will receive a wave of important numbers from the U.S.\u00a0 If U.S. data disappoints and the S&P\u2019s 1st tier uptrend line fails, the GBP\/USD\u2019s downturn may exacerbate.\u00a0 On the other hand, positive U.S. econ data could help break the Cable\u2019s fall and help the currency pair stabilize.\u00a0 Additionally, investors shouldn\u2019t overlook the encouraging decline in today\u2019s weekly Unemployment Claims release.\u00a0 We maintain our negative outlook on the GBP\/USD trend-wise, though 1.60 and July 2008 lows should serve as reliable immediate-term supports should they be tested.<\/p>\n

Present Price: 1.6082<\/p>\n

Resistances: 1.6091, 1.6117, 1.6139, 1.6158, 1.6181, 1.6203<\/p>\n

Supports: 1.6049, 1.6030, 1.6008, 1.5978, 1.5951, 1.5921<\/p>\n

Psychological: 1.60<\/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 has capsized beneath previous September lows on heavy sell-side volume.\u00a0 BoE Governor King didn\u2019t take long to return to his dovish stance.\u00a0 Today Governor King confirmed our suspicions that the BoE is supportive of a weak Pound in order to make its service and manufacturing goods more attractive to … <\/p>\n

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