{"id":4079,"date":"2009-09-30T09:39:38","date_gmt":"2009-09-30T14:39:38","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4079"},"modified":"2009-09-30T09:39:38","modified_gmt":"2009-09-30T14:39:38","slug":"gbpusd-consolidates-around-1-60","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/30\/gbpusd-consolidates-around-1-60\/","title":{"rendered":"GBP\/USD Consolidates Around 1.60"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable recovered nicely from Monday lows, feeding off of a combination of oversold conditions, positively mixed British econ data, and reassuring comments from the BoE.\u00a0 Britain\u2019s Current Account came in weak as we anticipated, fueled by consumption in light of a stronger Pound.\u00a0 Net Lending to Individuals made an encouraging improvement, showing banks are finally letting loose some of their pent up liquidity.\u00a0 The BoE helped the Pound\u2019s rally by stating they have no present intention to lower the discount rate while they hope to keep the Pound\u2019s broad-based depreciation within a reasonable level.\u00a0 King\u2019s retraction concerning lowering the discount rate charged on reserves is probably attributed to the improvement in net lending.\u00a0 Hence, the BoE has managed to value the Pound via psychological forces over the past month without taking any concrete action.\u00a0 However, despite this week\u2019s comments from the BoE, we believe the central still favors a weaker Pound in order to stimulate external demand for British services and manufactured goods.<\/p>\n

Investors will get a better picture of the demand for British manufactured goods tomorrow upon the release of Manufacturing PMI data.\u00a0 We expect Manufacturing PMI data to come in weak, supporting the BoE\u2019s dovish monetary actions.\u00a0 The more interesting data tomorrow will be Britain\u2019s Halifax HPI data.\u00a0 We\u2019ve recently seen signs of a cool down in Britain\u2019s housing recovery.\u00a0 British housing data has been the one consistent bright spot amid Britain\u2019s negatively mixed data over the past few months.\u00a0 Therefore, a pullback in housing could inflict further damage upon the Cable. Tomorrow\u2019s British data will be coupled with important econ data from the U.S. as well, making for another volatile 24-48 hours.<\/p>\n

Meanwhile, the Cable is trading back above June and July lows as well as the psychological 1.60 level.\u00a0 However, Monday\u2019s crash below June lows was certainly a very negative technical sign.\u00a0 Therefore, we maintain our negative outlook trend-wise on the GBP\/USD.\u00a0 As far as the bulls are concerned, it will be important for the Cable to consolidate and build a new base above our 1st tier uptrend line and the psychological 1.60 level.\u00a0 If the Cable can weather the downward momentum for the time being, the currency pair may be able to put together a near-term uptrend.\u00a0 Volume is picking up from the summer doldrums, yet we saw equally as strong sell-side action today as we saw on the buy-side yesterday, indicating the importance of present levels.\u00a0 The GBP\/USD has quite a few barriers to overcome before piecing together a meaningful uptrend beginning with our multiple downtrend lines and intraday highs.<\/p>\n

Present Price: 1.6024<\/p>\n

Resistances: 1.6045, 1.6090, 1.6112, 1.6132, 1.6169<\/p>\n

Supports: 1.6016, 1.5978, 1.5950, 1.5921, 1.5900<\/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 recovered nicely from Monday lows, feeding off of a combination of oversold conditions, positively mixed British econ data, and reassuring comments from the BoE.\u00a0 Britain\u2019s Current Account came in weak as we anticipated, fueled by consumption in light of a stronger Pound.\u00a0 Net Lending to Individuals made an encouraging … <\/p>\n

Continue reading “GBP\/USD Consolidates Around 1.60”<\/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-4079","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4079","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=4079"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4079\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}