{"id":4840,"date":"2009-11-16T11:34:25","date_gmt":"2009-11-16T16:34:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4840"},"modified":"2009-11-16T11:34:25","modified_gmt":"2009-11-16T16:34:25","slug":"gbpusd-aims-for-previous-november-highs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/16\/gbpusd-aims-for-previous-november-highs\/","title":{"rendered":"GBP\/USD Aims for Previous November Highs"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is perking up this morning as the S&P futures fight to break loose of their psychological 1100 level.\u00a0 The GBP\/USD has benefitted from a relatively quiet data wire from Britain since the CCC number beat expectations.\u00a0 However, the news flow will pick up tomorrow with the release of both CPI and RPI data points.\u00a0 Furthermore, the BoE will release its anticipated Inflation Letter.\u00a0 Since the BoE\u2019s target inflation rate is 2%, any disappointing numbers concerning inflation could spark investor speculation that the BoE will inject more liquidity into its QE fund.\u00a0 After all, Governor King recently left the door open to future alternative liquidity measures if deemed necessary.\u00a0 Meanwhile, an inflation reading topping analyst expectations could boost the Cable beyond previous November highs and would support why the BoE opted to inject 25 billion Pounds at its last meeting instead of the anticipated 50 billion.<\/p>\n

The U.S. will release pricing data of its own tomorrow along with TIC Long-Term Purchases, Capacity Utilization Rate, and Industrial Production.\u00a0 As we saw today, the U.S. data flow continues to print negatively mixed.\u00a0 Regardless, investors are snapping up equities and looking to send the S&P futures to fresh 2009 highs.\u00a0 If the S&P futures should experience a topside breakout, the Cable may follow suit since the two investment vehicles are normally positively correlated.<\/p>\n

Technically speaking, the Cable faces thin topside obstacles in the form of our 3rd and 4th tier downtrend lines along with previous November highs.\u00a0 Since our 4th tier downtrend line runs through these November highs, a pop past our 4th tier on sufficient volume could indicate a more extensive near-term breakout towards August highs and the highly psychological 1.70 level due to a relative lack of historical resistance.\u00a0 As for the downside, the GBP\/USD has our 1st and 2nd tier uptrend lines serving as technical cushions along with 11\/12 and 11\/05 lows.\u00a0 Furthermore, the psychological 1.65 level could work in the Cable\u2019s favor should it be tested.<\/p>\n

Present Price: 1.6741<\/p>\n

Resistances: 1.6761, 1.6790, 1.6808, 1.6828, 1.6849, 1.6875<\/p>\n

Supports: 1.6730, 1.6694, 1.6666, 1.6643, 1.6615, 1.6598<\/p>\n

Psychological: 1.65, 1.70, November and August Highs, November Lows<\/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 is perking up this morning as the S&P futures fight to break loose of their psychological 1100 level.\u00a0 The GBP\/USD has benefitted from a relatively quiet data wire from Britain since the CCC number beat expectations.\u00a0 However, the news flow will pick up tomorrow with the release of both … <\/p>\n

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