{"id":4376,"date":"2009-10-22T10:56:28","date_gmt":"2009-10-22T15:56:28","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2009\/10\/22\/gbpusd-dips-following-topside-breakthrough\/"},"modified":"2009-10-22T10:56:28","modified_gmt":"2009-10-22T15:56:28","slug":"gbpusd-dips-following-topside-breakthrough","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/22\/gbpusd-dips-following-topside-breakthrough\/","title":{"rendered":"GBP\/USD Dips Following Topside Breakthrough"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable is dipping after breaking through our previous 3rd and 4th tier downtrend lines and the psychological 1.65 level.\u00a0 We mentioned before how a failure of both our 3rd and 4th tiers signals a probable retest of September highs and possibly the highly psychological 1.70 level.\u00a0 The Pound continues to find strength in the BoE\u2019s decision to stray from its overtly dovish monetary policy in light of recent optimistic econ data.\u00a0 After all, King\u2019s previous hawkish sentiment was a leading factor driving the GBP\/USD towards its October lows.\u00a0 Therefore, it\u2019s reasonable to expect the Cable to flourish in a more neutral policy environment coupled with improving fundamentals.\u00a0 However, the BoE has yet to make a concrete action, and the central bank will likely need further fundamental confirmation showing that Britain\u2019s economy warrants a tighter monetary policy before considering physically tightening the reigns.<\/p>\n

Speaking of fundamentals, Britain\u2019s Retail Sales data printed 0% growth for the second time in a row, indicating the improvement in unemployment hasn\u2019t yielded higher consumption.\u00a0 Moving East, China reported econ data that was altogether in line with analyst expectations.\u00a0 China\u2019s inability to beat estimates has dented investor optimism a bit, though there shouldn\u2019t be much of a hangover.\u00a0 More importantly, bankers and analysts are expressing their concern about excess liquidity again, and its possible China will need to tighten in 2010.\u00a0 However, it\u2019s still 2009, and this type of speculation shouldn\u2019t impact global markets too much unless government officials officially announce China\u2019s express intent to take action.<\/p>\n

Meanwhile, all eyes are on Q3 earnings and tomorrow\u2019s wave of econ data.\u00a0 U.S. earnings continue to top estimates, and this may drown out building psychological headwinds from the ECB and China.\u00a0 Britain will release its Prelim GDP and BBA Mortgage Approvals data tomorrow.\u00a0 Investors expect Prelim GDP to turn positive along with a steady improvement in Mortgage Approvals.\u00a0 Additionally, the EU\u2019s PMI data should carry some weight since the last PMI wave signaled a cool down in Germany.<\/p>\n

Technically speaking, the Cable\u2019s in good shape and a test of September highs in the near-term seems probable.\u00a0 The EUR\/USD briefly ventured beyond 1.50 and the AUD\/USD continues to climb higher.\u00a0 The big development to watch is the S&P\u2019s 1100 approach.\u00a0 Should the S&P futures break beyond 1100, we can expect a corresponding rally in the risk trade.\u00a0\u00a0 We\u2019ve created a makeshift 4th tier downtrend line for the Cable to serve as a topside barrier along with 9\/15 and 9\/11 highs.\u00a0 As for the downside, the Cable\u2019s impressive ascent has created quite a few technical cushions, including our 4th tier uptrend line along with the psychological 1.65 level and intraday lows.<\/p>\n

Present Price: 1.6561<\/p>\n

Resistances: 1.6564, 1.6594, 1.6630, 1.6658, 1.6686, 1.6718<\/p>\n

Supports: 1.6538. 1.6515, 1.6489, 1.6459, 1.6427, 1.6399<\/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 dipping after breaking through our previous 3rd and 4th tier downtrend lines and the psychological 1.65 level.\u00a0 We mentioned before how a failure of both our 3rd and 4th tiers signals a probable retest of September highs and possibly the highly psychological 1.70 level.\u00a0 The Pound continues to … <\/p>\n

Continue reading “GBP\/USD Dips Following Topside Breakthrough”<\/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-4376","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4376","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=4376"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4376\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}