{"id":4871,"date":"2009-11-17T10:56:20","date_gmt":"2009-11-17T15:56:20","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4871"},"modified":"2009-11-17T10:56:20","modified_gmt":"2009-11-17T15:56:20","slug":"gbpusd-weakens-after-setting-new-november-highs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/17\/gbpusd-weakens-after-setting-new-november-highs\/","title":{"rendered":"GBP\/USD Weakens After Setting New November Highs"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is experiencing a little selling pressure after briefly trading beyond November highs.\u00a0 The Cable added onto gains since our last post as the currency pair followed U.S. equities higher.\u00a0 Britain re-entered the news wire today with the release of CPI and RPI data.\u00a0 Both data points printed a basis point hotter than analyst expectations.\u00a0 As a result, the BoE has gained a little breathing room in regards to its upcoming monetary policy decision by avoiding a movement below 1%.\u00a0 Meanwhile, the U.S. released PPI data which came in short of analyst expectations.\u00a0 The most disconcerting number was the -0.6% Core PPI reading (minus food and energy).\u00a0 The -0.6% number is the weakest since November 2006, indicating the Fed\u2019s alternative liquidity measures haven\u2019t relieved deflationary pressures resulting from a decline in consumption.\u00a0 Today\u2019s negative pricing data further supports the Fed\u2019s decisions to maintain its loose monetary policy stance for the foreseeable future.<\/p>\n

The positive pricing data from Britain combined with weak pricing data from the U.S. would normally lead investors to expect a decline in the Dollar.\u00a0 However, the Dollar as shown a muted reaction thus far as investors await additional U.S. economic data.\u00a0 On the other hand, the combination of British and U.S. pricing data is giving the Pound a bit of relative strength, as highlighted by a pullback in the EUR\/GBP.\u00a0 Britain will release its CBI Industrial Order Expectations on Wednesday along with central bank meeting minutes.\u00a0 Investors will likely be paying close attention to the meeting minutes to see whether there are any hints in regards to the BoE\u2019s outlook for future monetary policy decisions and well as their opinion of the overall economy.<\/p>\n

Technically speaking, the Cable\u2019s move beyond our 4th tier downtrend line could prove to be an important near-term move considering the trend line runs through 11\/09 highs.\u00a0 The GBP\/USD faces light near-term historical resistance between present price and the psychological 1.70 level.\u00a0 In fact, we had to trace back to 2003 levels to find more substantial resistances.\u00a0 Hence, the Cable could be in for more extensive topside movements should fundamentals and U.S. equities cooperate.\u00a0 However, the Cable has drifted back below 11\/09 highs, meaning there\u2019s a potential for downward forces to kick in.\u00a0 As for the downside, the Cable still has multiple uptrend lines serving as technical cushions along with 11\/16 and 11\/12 lows.\u00a0 Furthermore, the psychological 1.65 level could work in the Cable\u2019s favor should conditions deteriorate.<\/p>\n

Present Price: 1.6790<\/p>\n

Resistances: 1.6808, 1.6828, 1.6849, 1.6875, 1.6896, 1.6913, 1.6935<\/p>\n

Supports: 1.6790, 1.6730, 1.6694, 1.6664, 1.6615, 1.6594<\/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 experiencing a little selling pressure after briefly trading beyond November highs.\u00a0 The Cable added onto gains since our last post as the currency pair followed U.S. equities higher.\u00a0 Britain re-entered the news wire today with the release of CPI and RPI data.\u00a0 Both data points printed a basis … <\/p>\n

Continue reading “GBP\/USD Weakens After Setting New November Highs”<\/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-4871","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4871","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=4871"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4871\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}