{"id":4347,"date":"2009-10-20T10:14:41","date_gmt":"2009-10-20T15:14:41","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4347"},"modified":"2009-10-20T10:14:41","modified_gmt":"2009-10-20T15:14:41","slug":"gbpusd-rides-higher-following-impressive-earnings","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/20\/gbpusd-rides-higher-following-impressive-earnings\/","title":{"rendered":"GBP\/USD Rides Higher Following Impressive Earnings"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is climbing towards our important 3rd tier downtrend line and the psychological 1.65 level after earnings from U.S. bellweathers surpassed analyst expectations.\u00a0 The combination of impressive earnings and recent positive GBP data has given investors enough incentive to continue the Cable\u2019s amazing run.\u00a0 The currency pair is now facing our important 3rd downtrend line which we highlighted in our previous commentary.\u00a0 Our 3rd tier runs through September highs, meaning its demise could signal another bull run for the Pound.\u00a0 Additionally, our new 4th tier downtrend line isn\u2019t too far above.\u00a0 The 4th tier runs through August highs, showing the Cable is ultimately knocking on the door of a potential run towards the psychological 1.70 level.\u00a0 Despite the Cable\u2019s present strength, we\u2019ve seen runs like this before only top out just below their critical downside technicals, only to revert to their previous trend.\u00a0 Hence, we are reserving our optimism until the GBP\/USD can break through these aforementioned technical walls.\u00a0 Regardless of topside barriers, the Cable has quickly established quite a few technical cushions during its present run, beginning with our 2nd-4th uptrend lines and 10\/19 lows.<\/p>\n

It is a bit ironic that BoE Governor King will be addressing the general public this afternoon EST.\u00a0 We\u2019re certain King is fully aware of the important near-term technical position of the Cable at present.\u00a0 As we\u2019ve seen before, King is not afraid to play psychological games with investors to influence the near-term value of the Pound.\u00a0 Hence, we would not be surprised to see Governor King attempt to subdue investors by quelling hopes of a reversal from his notoriously dovish monetary stance.\u00a0 Therefore, King may be a bit aggressive during his public address, meaning investors should be wary of higher volatility.\u00a0 Disappointing PPI data from both the U.S. and Germany today could further motivate for King to stick to his guns.\u00a0 Another incentive to keep psychology contained is the wave of economic data flowing from China late Wednesday EST.\u00a0 We suspect China will top forecasts once again, providing further motivation for investors to head for the riskier investment vehicles.\u00a0 Therefore, King has more than enough reasons to keep the Cable bulls in check.\u00a0 After all, British data has only recently turned positive, and the BoE likely wants more confirmation concerning the recovery in the nation\u2019s service sector and unemployment.\u00a0 On the other hand, now would be an opportune time for the BoE to support the idea of a stronger monetary policy, so we will have to see how the news pans out.<\/p>\n

Meanwhile, investors should keep a close eye on the interaction of the Cable with our 3rd and 4th tier downtrend lines along with the psychological 1.65 level.\u00a0 The GBP\/USD is on the cusp of a more substantial breakout, and it will likely be up to Governor King whether to play ball or not.<\/p>\n

Present Price: 1.6465<\/p>\n

Resistances: 1.6486, 1.6515, 1.6547, 1.6570, 1.6590, 1.6625<\/p>\n

Supports: 1.6431. 1.6395, 1.6372, 1.6348, 1.6323, 1.6266<\/p>\n

Psychological: 1.65<\/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 climbing towards our important 3rd tier downtrend line and the psychological 1.65 level after earnings from U.S. bellweathers surpassed analyst expectations.\u00a0 The combination of impressive earnings and recent positive GBP data has given investors enough incentive to continue the Cable\u2019s amazing run.\u00a0 The currency pair is now facing … <\/p>\n

Continue reading “GBP\/USD Rides Higher Following Impressive Earnings”<\/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-4347","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4347","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=4347"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4347\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}