{"id":4134,"date":"2009-10-02T10:21:45","date_gmt":"2009-10-02T15:21:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4134"},"modified":"2009-10-02T10:21:45","modified_gmt":"2009-10-02T15:21:45","slug":"gbpusd-slides-towards-september-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/02\/gbpusd-slides-towards-september-lows\/","title":{"rendered":"GBP\/USD Slides Towards September Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The GBP\/USD is declining rapidly once again after 1.60 and our multiple uptrend lines failed to hold.\u00a0 Britain\u2019s Manufacturing and Construction PMIs both came in weaker than expected, further confirming the pullback in global economic data.\u00a0 On a positive note, Britain\u2019s Nationwide HPI came in a basis point stronger than expected.\u00a0 Though last week\u2019s housing data hit a speed bump, British housing prices are holding up relatively well.\u00a0 However, the 0.9% growth is still a sizable decline compared to the previous release of 1.4%.\u00a0 The negative Manufacturing PMI appears to be the most disconcerting of the three, and is likely why BoE Governor King has approached monetary policy with a dovish stance.\u00a0 Therefore, we expect King to maintain his dovish behavior unless manufacturing and services data turns a corner for the better.\u00a0 Meanwhile, the Pound is dropping like a rock as we recognize sizable losses in the Cable and gains in the EUR\/GBP.<\/p>\n

The Cable has really put itself in a tough position by failing to stabilize above the psychological 1.60 level this last go-around.\u00a0 The currency pair is now staring at September and June 2009 lows.\u00a0 Furthermore, the GBP\/USD\u2019s ambivalence towards our 3rd tier uptrend line is discouraging for the medium-term.\u00a0 If September lows fail to hold we could see a retracement towards our 2nd tier uptrend rather quickly.\u00a0 The fact our 2nd tier uptrend line connects through March 2009 levels is a bit worrisome, since a failure of our 2nd tier could imply a medium-term downtrend towards the 1.40 level.\u00a0 To make matters worse, there\u2019s quite a bit of room between our 1st tier uptrend line (off-grid) and our 2nd tier uptrend line.\u00a0 Therefore, losses could accelerate over the near-term if immediate technical cushions don\u2019t hold up.\u00a0 As for the immediate-term, investors will look to September lows and our 2nd tier uptrend line for technical support.\u00a0 The Cable\u2019s intraday performance will rely upon the outcome of U.S. unemployment data and the currency pair\u2019s positive correlation with U.S. equities.\u00a0 Negative data results and a movement in the S&P futures towards 1000 would likely encourage the Cable to test the boundaries of its technical cushions.<\/p>\n

Britain will get back on the data train first thing Monday morning by releasing\u00a0 its Halifax HPI and Services PMI.\u00a0 The Services PMI release will be very important to the Cable\u2019s near-term performance since services account for a large majority of Britain\u2019s GDP.\u00a0 A negative Services PMI number would only create another drag on the Pound.\u00a0 Meanwhile, we maintain our negative outlook on the GBP\/USD trend-wise due to the aforementioned reasons.<\/p>\n

Present Price: 1.5844<\/p>\n

Resistances: 1.5900, 1.5921, 1.5950, 1.5978, 1.6016, 1.6045<\/p>\n

Supports: 1.5833, 1.5807, 1.5776, 1.5750, 1.5718, 1.5671<\/p>\n

Psychological: 1.60, 1.55<\/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 GBP\/USD is declining rapidly once again after 1.60 and our multiple uptrend lines failed to hold.\u00a0 Britain\u2019s Manufacturing and Construction PMIs both came in weaker than expected, further confirming the pullback in global economic data.\u00a0 On a positive note, Britain\u2019s Nationwide HPI came in a basis point stronger than expected.\u00a0 … <\/p>\n

Continue reading “GBP\/USD Slides Towards September Lows”<\/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-4134","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4134","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=4134"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4134\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}