{"id":4045,"date":"2009-09-28T11:03:48","date_gmt":"2009-09-28T16:03:48","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4045"},"modified":"2009-09-28T11:03:48","modified_gmt":"2009-09-28T16:03:48","slug":"gbpusd-continues-its-rapid-descent","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/28\/gbpusd-continues-its-rapid-descent\/","title":{"rendered":"GBP\/USD Continues its Rapid Descent"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has deteriorated faster than we anticipated, blowing right past the psychological 1.60 level with little hesitation.\u00a0 The GBP\/USD has proceeded to decline below June 8th lows, a significant negative technical development in our eyes.\u00a0 The Cable appears to be committing to a more protracted downtrend pattern.\u00a0 Though the Cable could opt to try and consolidate around the psychological 1.60 area to salvage an uptrend, there is a lot of space between our 3rd uptrend and our 1st-2nd uptrend lines (off-grid).\u00a0 Therefore, losses have the potential to accelerate further over the near-term.\u00a0 In fact, we predict a medium-term decline towards 1.50 could be in the works.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with Friday highs and the highly psychological 1.60 level.\u00a0 Economic data from Britain and the U.S. over the next week should determine the GBP\/USD pieces together a near-term consolidation or continues its rapid descent towards our 2nd tier uptrend line.<\/p>\n

Britain will make a return to the data circle tomorrow by releasing its Current Account, Final GDP, CBI Realized Sales, etc.\u00a0 Brtain was relatively quiet on the data front last week despite the Cable\u2019s decline, meaning volatility could remain at a heightened state over the next 24-48 hours.\u00a0 The latest employment and consumption data from Britain indicated a cool down in the economic recovery.\u00a0 Further deterioration in consumption, lending, and trade would likely drag the GBP\/USD lower.\u00a0 Since BoE Governor King has stuck to his dovish monetary policy stance, we believe Britain\u2019s Current Account data could indicate a noticeable decline in UK exports.\u00a0 The U.S. will release consumption data of its own tomorrow along with industrial production from Japan.\u00a0 If we see a continuation of the theme of a global economic cool down U.S. equities will likely get whacked, a negative indicator for the GBP\/USD.\u00a0 Since our outlook concerning the health of the global economic is darkening, we have even fewer reasons to be positive on the Cable other than the concept of oversold conditions.\u00a0 Therefore, we maintain our negative outlook on the Cable trend-wise even if bottom-feeders help the currency pair consolidate over the immediate-term.<\/p>\n

Present Price: 1.5825<\/p>\n

Resistances: 1.5847, 1.5871, 1.5921, 1.5950, 1.5978<\/p>\n

Supports: 1.5813, 1.5780, 1.5751, 1.5726, 1.5672<\/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 deteriorated faster than we anticipated, blowing right past the psychological 1.60 level with little hesitation.\u00a0 The GBP\/USD has proceeded to decline below June 8th lows, a significant negative technical development in our eyes.\u00a0 The Cable appears to be committing to a more protracted downtrend pattern.\u00a0 Though the Cable … <\/p>\n

Continue reading “GBP\/USD Continues its Rapid Descent”<\/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-4045","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4045","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=4045"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4045\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}