{"id":4499,"date":"2009-10-30T11:23:11","date_gmt":"2009-10-30T16:23:11","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4499"},"modified":"2009-10-30T11:23:11","modified_gmt":"2009-10-30T16:23:11","slug":"gbpusd-deflected-by-our-2nd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/30\/gbpusd-deflected-by-our-2nd-tier-downtrend-line\/","title":{"rendered":"GBP\/USD Deflected by our 2nd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable\u2019s rally in reaction to yesterday\u2019s positive U.S. Prelim GDP has hit a wall at our 2nd tier downtrend line.\u00a0 As with the EUR\/USD, the GBP\/USD failed to receive any abnormal topside volume yesterday, indicating bulls weren\u2019t fully behind the risk rally.\u00a0 The lack of topside conviction likely stems from the disappointing U.S. Unemployment Claims number which was overshadowed by optimism surrounding GDP data.\u00a0 Furthermore, Britain released an HPI number today which printed three basis points below expectations and five lower than its previous release.\u00a0 The impressive recovery in Britain\u2019s housing market has been at the heart of the nation\u2019s broader economic stability.\u00a0 Therefore, any week housing data carries a little extra weight in Britain.\u00a0 Regardless, the Pound continues to enjoy its relative strength, as exhibited by the large pullback in the EUR\/GBP.\u00a0 Despite today\u2019s HPI number and last Friday\u2019s disappointing GDP data, Britain\u2019s forward looking econ data has been printing positive.\u00a0 Therefore, Sterling investors are taking a wait and see approach to analyze not only what Britain\u2019s Q4 performance looks like, but also how the BoE stands in regards to upcoming monetary policy.<\/p>\n

Speaking of British econ data, Britain\u2019s news wire will heat up next week beginning with more HPI data on Monday along with Manufacturing PMI.\u00a0 However, investors will likely be more focused on Wednesday\u2019s Services PMI data.\u00a0 Since services comprise nearly 70% of Britain\u2019s GDP, investors will be looking to see if the previous Services PMI release was a sign of more positive things to come.\u00a0 The U.S. will be releasing some Manufacturing PMI data of its own on Monday to go along with Pending Home Sales.\u00a0 Therefore, it looks like we\u2019ll have an active kickoff next week.<\/p>\n

Technically speaking, the Cable\u2019s inability to test 10\/23 highs has dragged the currency pair into a wedge pattern.\u00a0 Fortunately for bulls, the Cable is finding some strength above 1.65, meaning the psychological level could work in the GBP\/USD\u2019s favor.\u00a0 Furthermore, the Cable as multiple uptrend lines to rely upon.\u00a0 On the other hand, there\u2019s still a medium-term downtrend at work, meaning the Cable has its work cut out for it to the topside.<\/p>\n

Present Price: 1.6507<\/p>\n

Resistances: 1.6562, 1.6585, 1.6605, 1.6635, 1.6676, 1.6704<\/p>\n

Supports: 1.6506, 1.6468, 1.6431, 1.6397, 1.6356, 1.6326<\/p>\n

Psychological: 1.65, 1.60<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> <\/span>provided by <\/span>Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> <\/span>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> <\/span>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\u2019s rally in reaction to yesterday\u2019s positive U.S. Prelim GDP has hit a wall at our 2nd tier downtrend line.\u00a0 As with the EUR\/USD, the GBP\/USD failed to receive any abnormal topside volume yesterday, indicating bulls weren\u2019t fully behind the risk rally.\u00a0 The lack of topside conviction likely stems from … <\/p>\n

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