{"id":4619,"date":"2009-11-09T11:34:44","date_gmt":"2009-11-09T16:34:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4619"},"modified":"2009-11-09T11:34:44","modified_gmt":"2009-11-09T16:34:44","slug":"gbpusd-surges-through-our-downtrend-lines-as-dollar-weakens","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/09\/gbpusd-surges-through-our-downtrend-lines-as-dollar-weakens\/","title":{"rendered":"GBP\/USD Surges Through Our Downtrend Lines as Dollar Weakens"},"content":{"rendered":"

By Fast Brokers <\/strong>– Both the Cable and the EUR\/USD are making a commitment to their respective uptrends today after finishing the week on an indecisive tone.\u00a0 Investors are showing a clear preference for riskier investment assets despite U.S. unemployment data printing worse than expected on Friday.\u00a0 Investors are being encouraged by the G20 statement from this weekend\u2019s meeting in favor of continued loose monetary policies until the global economy is on a better footing.\u00a0 Such solidarity is boosting investor confidence since the latest central bank meetings were ripe with speculation.\u00a0 Speaking of which, the BoE\u2019s decision to inject 25 billion into QE as opposed to the expected 50 billion is helping fuel the Cable\u2019s topside breakout.\u00a0 Furthermore, investors should keep in mind that both Britain\u2019s Services and Manufacturing PMIs are outperforming, showing that the economy is recovering nicely despite the poor Prelim GDP.<\/p>\n

Technically speaking, the Cable has responded by charging well beyond our previous downtrend line running through August highs.\u00a0 Therefore, the Cable is indicating that a continued topside breakout towards the August highs and the psychological 1.70 level may be around the corner.\u00a0 As for the downside, we\u2019ve readjusted our uptrend lines to compensate for today\u2019s positive movements.\u00a0 That being said, the GBP\/USD still has multiple uptrend lines serving as technical cushions along with 11\/6 and 11\/5 lows, not to mention the psychological 1.65 level is no working in the currency pair\u2019s favor.<\/p>\n

Meanwhile, gold has broken past its psychological $1100\/oz level, another positive catalyst for the Cable considering the precious metal\u2019s negative correlation with the Dollar.\u00a0 Additionally, the S&P futures are trading higher by nearly 1% pre-market while the EUR\/USD tests our key 3rd tier downtrend line and its psychological 1.50 level.\u00a0 Hence, the Cable\u2019s correlations are creating an environment supportive of further broad-based Dollar weakness.\u00a0 Britain will release its Trade Balance data tomorrow, and analysts are expecting a slight improvement from the previous number considering the encouraging PMI data as of late.<\/p>\n

Present Price: 1.6791<\/p>\n

Resistances: 1.6797, 1.6812, 1.6830, 1.6847, 1.6876<\/p>\n

Supports: 1.6761, 1.6730, 1.6714, 1.6688, 1.6662, 1.6621<\/p>\n

Psychological: 1.65, August Highs<\/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 – Both the Cable and the EUR\/USD are making a commitment to their respective uptrends today after finishing the week on an indecisive tone.\u00a0 Investors are showing a clear preference for riskier investment assets despite U.S. unemployment data printing worse than expected on Friday.\u00a0 Investors are being encouraged by the G20 statement … <\/p>\n

Continue reading “GBP\/USD Surges Through Our Downtrend Lines as Dollar Weakens”<\/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-4619","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4619","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=4619"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4619\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}