{"id":4571,"date":"2009-11-04T10:38:04","date_gmt":"2009-11-04T15:38:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4571"},"modified":"2009-11-04T10:38:04","modified_gmt":"2009-11-04T15:38:04","slug":"gbpusd-climbs-back-above-1-65-ahead-of-fomc-decision","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/04\/gbpusd-climbs-back-above-1-65-ahead-of-fomc-decision\/","title":{"rendered":"GBP\/USD Climbs Back Above 1.65 Ahead of FOMC Decision"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cabled has recovered nicely from Tuesday lows after bottoming along our 2nd tier uptrend line and just above 10\/26 lows.\u00a0 Buyers come to the rescue following positive economic data flows from Britain coupled with another large topside breakout in gold.\u00a0 Yesterday\u2019s Halifax HPI number tagged onto the positive Manufacturing PMI performance on Monday by printing 4 basis points above analyst expectations.\u00a0 Today\u2019s Services PMI data completed the trifecta, printing at 56.9 vs. 55.4E.\u00a0 We mentioned previously how the Services PMI number should carry a little more weight since the services industry comprises roughly 70% of GDP.\u00a0 The Services data didn\u2019t disappoint, and the 56.9 reading falls in line with pre-crisis levels.\u00a0 The Pound has reacted positively, flexing its relative strength while sending the EUR\/GBP lower.<\/p>\n

The Cable also got a boost from yesterday\u2019s impressive breakout in gold.\u00a0 The precious metal is presently looking to test its highly psychological $1100\/oz level.\u00a0 As we mentioned in today\u2019s EUR\/USD commentary, gold\u2019s large topside movement could signal a coinciding decline in the Dollar due to their negative correlation.\u00a0 On the other hand, yesterday\u2019s action in gold may been largely due to India\u2019s sizable purchase of bullion from the IMF.\u00a0 Either way, gold\u2019s breakout sends some positive signals, helping the Cable\u2019s uptrend.\u00a0 However, despite today\u2019s strength in the Cable, the currency pair still faces our 3rd and 4th tier downtrend lines along with\u00a0 10\/29, 10\/23, and 9\/11 highs.\u00a0 Therefore, a few worthy topside technicals remain between present price and more significant topside movements.\u00a0 As for the downside, the Cable has multiple uptrend lines serving as technical cushions along with 11\/03 and 10\/23 lows.\u00a0 Furthermore, the psychological 1.65 level may now work in the Cable\u2019s favor.<\/p>\n

The next 24-48 hours will be all about the central bank meetings.\u00a0 The Fed will announce its monetary policy this afternoon with the BoE and ECB following early Thursday PST.\u00a0 While the Fed is expected to keep its loose liquidity policy intact for the \u2018foreseeable future\u2019, the BoE and ECB meetings carry more uncertainty.\u00a0 Although analysts are expecting the BoE to increase its QE package by 50 billion, the BoE has expressed a more hawkish tone as of late. Prelim GDP aside, recent British econ data has been more positive than negative.\u00a0 Therefore, although the BoE is expected to inject more liquidity tomorrow, there remains a possibility that the central bank may just stand pat.\u00a0 Considering the slight uncertainty surrounding upcoming monetary policy decisions, we could be in for a volatile couple trading sessions in the FX markets.\u00a0 Therefore, investors should keep a sharp eye on the Cable\u2019s interaction with its technical levels as well as the behavior of its correlations.<\/p>\n

Present Price: 1.6526<\/p>\n

Resistances: 1.6544, 1.6566, 1.6604, 1.6630, 1.6662, 1.6688<\/p>\n

Supports: 1.6505, 1.6473, 1.6428, 1.6397, 1.6362, 1.6329<\/p>\n

Psychological: 1.65<\/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 Cabled has recovered nicely from Tuesday lows after bottoming along our 2nd tier uptrend line and just above 10\/26 lows.\u00a0 Buyers come to the rescue following positive economic data flows from Britain coupled with another large topside breakout in gold.\u00a0 Yesterday\u2019s Halifax HPI number tagged onto the positive Manufacturing PMI … <\/p>\n

Continue reading “GBP\/USD Climbs Back Above 1.65 Ahead of FOMC Decision”<\/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-4571","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4571","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=4571"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4571\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}