{"id":4216,"date":"2009-10-08T08:05:20","date_gmt":"2009-10-08T13:05:20","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4216"},"modified":"2009-10-08T08:05:20","modified_gmt":"2009-10-08T13:05:20","slug":"gbpusd-bounces-past-1-60-on-broad-based-dollar-weakness","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/08\/gbpusd-bounces-past-1-60-on-broad-based-dollar-weakness\/","title":{"rendered":"GBP\/USD Bounces Past 1.60 on Broad-Based Dollar Weakness"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable finally decided to participate with the gold rush and broad-based weakness of the Dollar.\u00a0 The GBP\/USD popped above the psychological 1.60 level and 10\/6 highs.\u00a0 However, the Cable is buckling under the pressure of our 3rd tier downtrend line and 9\/30 highs.\u00a0 The GBP\/USD finally shook free of its tight and is looking to piece together a more substantial rally than the one we witnessed on 9\/30.\u00a0 A strong movement past our 3rd tier downtrend line would likely yield such an outcome since it runs through 9\/01 highs.\u00a0 The BoE kept its monetary policy unchanged as did the ECB.\u00a0 Both monetary decisions are in line with analyst expectations and are presently having a limited impact on FX markets.\u00a0 However, more important will be the press conferences and quotes from BoE and ECB members over the remainder of the week.\u00a0 Words have moved currencies as much as actions.\u00a0 Therefore, investors will be looking to see if BoE governor King makes any additional dovish comments as he\u2019s been prone to do.<\/p>\n

Britain will be light on the econ data wire until tomorrow\u2019s PPI Input and Trade Balance releases.\u00a0 Both will be important gauges for future monetary policy.\u00a0 Weak input prices and a large Trade Balance deficit would only encourage the BoE to maintain a dovish monetary stance to help buoy prices and stimulate external demand for British goods and services.\u00a0 Therefore, volatility could pick up as the week comes to a close.\u00a0 FX markets will also be sensitive to Q3 earnings releases.\u00a0 Strong Q3 earnings would help drive equities hire while weakening the Dollar further, and vice versa.\u00a0 However, the Pound should remain at a disadvantage regardless of any continued near-term broad based weakness in the Dollar due to the state of Britain\u2019s economy and the comparatively dovish stance of the BoE.<\/p>\n

Technically speaking, the GBP\/USD faces multiple downtrend lines along with the 9\/30 highs.\u00a0 The Cable\u2019s bounce past 1.60 is the first step to more significant gains, yet the currency pair will need to break through the aforementioned technical barriers before realizing more substantial movements to the topside.\u00a0 As for the downside, the GBP\/USD has cushions in 10\/2 and 9\/28 lows along with multiple uptrend lines.\u00a0 Recent strength in the Cable has created some near-term breathing room.\u00a0 Consecutive higher lows (9\/28, 10\/2, 10.7) create a strong base for the Cable to fall back on over the near-term.\u00a0 Therefore, immediate-term movements to the downside should be limited.\u00a0\u00a0\u00a0 However, a failure of these triple lows and our 1st tier uptrend line would heighten near-term losses.\u00a0 Overall, extraordinary breakouts in gold and the AUD\/USD create an environment for a new near-term uptrend line in the Cable.\u00a0 Therefore, investors should keep a close eye on the Cable\u2019s interaction with our technical barriers over the next 24 hours.<\/p>\n

Present Price: 1.6049<\/p>\n

Resistances: 1.6072, 1.6095, 1.6127, 1.6145, 1.6168, 1.6191, 1.6211<\/p>\n

Supports: 1.6045. 1.6024, 1.5992, 1.5964, 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 finally decided to participate with the gold rush and broad-based weakness of the Dollar.\u00a0 The GBP\/USD popped above the psychological 1.60 level and 10\/6 highs.\u00a0 However, the Cable is buckling under the pressure of our 3rd tier downtrend line and 9\/30 highs.\u00a0 The GBP\/USD finally shook free of its … <\/p>\n

Continue reading “GBP\/USD Bounces Past 1.60 on Broad-Based Dollar Weakness”<\/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-4216","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4216","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=4216"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4216\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}