{"id":4890,"date":"2009-11-18T12:16:56","date_gmt":"2009-11-18T17:16:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4890"},"modified":"2009-11-18T12:16:56","modified_gmt":"2009-11-18T17:16:56","slug":"gbpusd-consolidates-with-sp-futures","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/18\/gbpusd-consolidates-with-sp-futures\/","title":{"rendered":"GBP\/USD Consolidates with S&P Futures"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is consolidating after briefly trading beyond November highs on Monday.\u00a0 Investors are presently digesting the BoE Meeting Minutes released earlier today.\u00a0 The minutes revealed that although seven members of the BoE voted for the 25 billion Pound QE injection, one member vote for non-action and the other for a larger 40 billion Pound injection.\u00a0 Therefore, divisions of opinion may exist in the BoE in regards to present and future monetary policy actions, thereby increasing investor uncertainty a bit.\u00a0 However, if pricing data points, such as Tuesday\u2019s CPI and RPI, continue to rise while unemployment falls the BoE may choose a less dovish monetary policy stance in the future, thereby strengthening the Pound relative to the Dollar over the medium-term.\u00a0 U.S. data has been underperforming as of late and the Fed\u2019s loose monetary stance could be in place for quite some time.\u00a0 As for the time being, the Cable has had trouble breaking 11\/09 highs and our 4th tier downtrend line.\u00a0 Meanwhile, the EUR\/USD remains locked beneath its highly psychological 1.50 level.\u00a0 Therefore, the Cable has yet to receive the positive boost it needs to approach its own highly psychological 1.70 level.<\/p>\n

Technically speaking, investors should continue to monitor the Cable\u2019s interaction with our 4th tier downtrend line since it 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 Speaking of which, investors received another wave of negatively mixed U.S. econ data and the S&P futures are having trouble creating some topside separation from their highly psychological 1.70 level.\u00a0 As a result, the economic fundamentals are not helping out the Cable\u2019s uptrend for the time being.\u00a0 However, Britain will release Retail Sales tomorrow along with Public Sector Net Borrowing.\u00a0 A positive Retail Sales number could help the uptrend\u2019s cause.\u00a0 Meanwhile, the Cable is continuing a consolidative pattern while slowly drifting 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: 1.6795<\/p>\n

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

Supports: 1.6778, 1.6753, 1.6730, 1.6694, 1.6664, 1.6615, 1.6594<\/p>\n

Psychological: 1.70, 1.65 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 consolidating after briefly trading beyond November highs on Monday.\u00a0 Investors are presently digesting the BoE Meeting Minutes released earlier today.\u00a0 The minutes revealed that although seven members of the BoE voted for the 25 billion Pound QE injection, one member vote for non-action and the other for a … <\/p>\n

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