{"id":4262,"date":"2009-10-13T10:47:39","date_gmt":"2009-10-13T15:47:39","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4262"},"modified":"2009-10-13T10:47:39","modified_gmt":"2009-10-13T15:47:39","slug":"gbpusd-bounces-from-intraday-lows-on-oversold-conditions","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/13\/gbpusd-bounces-from-intraday-lows-on-oversold-conditions\/","title":{"rendered":"GBP\/USD Bounces from Intraday Lows on Oversold Conditions"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is recovering from intraday losses after experiencing a key pullback since late Friday.\u00a0 The GBP\/USD sank below our important 1st tier uptrend line and September lows, setting itself up for another leg down over the near-term.\u00a0 Ironically, the EUR\/USD eclipsed its September highs today, signifying the contrasting paths of the Euro and Pound.\u00a0 In fact, the EUR\/GBP has been climbing much closer to the key parity level.\u00a0 However, the Pound\u2019s present strength is not surprising, and marks the over-extension of the Aussie and gold.\u00a0 We notice that the S&P futures are trading soft while investors snap up oversold 30 Year T-Bond futures.\u00a0 The behavior of these various investment vehicles supports today\u2019s pop in the Pound.\u00a0 What doesn\u2019t support today\u2019s pop is the weaker than expected CPI growth.\u00a0 Today\u2019s disappointing CPI release couples with Friday\u2019s discouraging PPI number, as opposed to the previous release of the two pricing data points when CPI outperformed expectations.\u00a0 Therefore, corporate revenue should be under added strain, leaving the door open for the BoE to add funds to its QE program.\u00a0 At the very least, current pricing data supports the BoE\u2019s dovish stance and encourages the central bank to maintain its loose monetary policy for the time being.\u00a0 This spells bad news the Pound and gives us little reason to alter our negative outlook on the Cable trend-wise.<\/p>\n

Britain will keep the data train rolling tomorrow by releasing important CCC numbers.\u00a0 The CCC has been relatively flat over the last few months.\u00a0 Therefore, any dramatic shift to either side would most likely have a large impact on the Pound.\u00a0 While the medium-term trend of the CCC has been headed south, stagnation over the past quarter could represent a trough in the pattern.\u00a0 Therefore, we expect the CCC may register a larger than anticipated increase tomorrow.\u00a0 Such an occurrence would reinforce the significance of the Cable\u2019s decline below our key 1st tier uptrend line.\u00a0 Despite the weight of tomorrow\u2019s CCC release, the GBP\/USD\u2019s present fate likely relies upon the performance of upcoming U.S. earnings and econ data flows.\u00a0 Outperformance of each reinforces the Cable\u2019s negative correlation with the EUR\/USD, and encourages investors to favor the Dollar over the Pound due to the BoE\u2019s clear dovish policy stance.<\/p>\n

Technically speaking, our multiple downtrend lines and the highly psychological 1.60 area serve as topside barriers.\u00a0 As for the downside, there\u2019s quite a bit of distance between present price and our next uptrend line.\u00a0 Furthermore, a dip beneath 06\/2008 lows sets the stage for a more protracted pullback towards 05\/2008 levels and the psychological 1.55\/1.50 trading zones.\u00a0 We maintain our negative outlook on the Pound due to the aforementioned analysis unless either Q3 earnings disappoint and\/or the BoE alters its monetary stance.<\/p>\n

Present Price: 1.5808<\/p>\n

Resistances: 1.5825, 1.5847, 1.5869, 1.5907, 1.5935, 1.5981<\/p>\n

Supports: 1.5778. 1.5760, 1.5728, 1.5708, 1.5671, 1.5635<\/p>\n

Psychological: 1.55, 1.50<\/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 is recovering from intraday losses after experiencing a key pullback since late Friday.\u00a0 The GBP\/USD sank below our important 1st tier uptrend line and September lows, setting itself up for another leg down over the near-term.\u00a0 Ironically, the EUR\/USD eclipsed its September highs today, signifying the contrasting paths of … <\/p>\n

Continue reading “GBP\/USD Bounces from Intraday Lows on Oversold Conditions”<\/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-4262","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4262","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=4262"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4262\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}