{"id":4928,"date":"2009-11-20T12:19:11","date_gmt":"2009-11-20T17:19:11","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4928"},"modified":"2009-11-20T12:19:11","modified_gmt":"2009-11-20T17:19:11","slug":"gbpusd-sells-off-sharply-to-psychological-1-65-zone","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/20\/gbpusd-sells-off-sharply-to-psychological-1-65-zone\/","title":{"rendered":"GBP\/USD Sells Off Sharply to Psychological 1.65 Zone"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is undergoing an intense pullback today, dropping beneath all of our previous uptrend lines along with 11\/12 lows.\u00a0 The Pound is getting hit by a report from Nationwide and an analyst poll from Bloomberg implying Britian\u2019s housing recovery may be overdone and analysts are expecting a pullback in prices in 2010.\u00a0 These two discouraging news releases tack onto Wednesday\u2019s negative Building Permits and Housing Starts data points from the U.S.\u00a0 Furthermore, the fact that yesterday\u2019s British Retail Sales data printed two basis points below analyst expectations isn\u2019t helping the Pound\u2019s cause.\u00a0 Today\u2019s bounce in the EUR\/GBP highlights the relative weakness of the Pound, yet several near-term downtrend lines due remain on this major Euro cross.\u00a0 Meanwhile, the S&P futures have ventured back below their psychological 1100 level.\u00a0 Therefore, investors should keep a close eye on the S&P\u2019s interaction with 1100 since the futures are normally negatively correlated with the Dollar.\u00a0 Any technically significant pullbacks in the S&P have the potential to impact the Cable with the possibility of extending the currency pair\u2019s present pullback towards previous November lows.<\/p>\n

Technically speaking, the Cable is currently stabilizing along what is now our 4th tier uptrend line.\u00a0 This is an encouraging development since our 4th tier runs through November lows.\u00a0 That being said, these November lows serve as the next noteworthy technical support should our 4th tier uptrend line give way.\u00a0 We\u2019ve also readjusted our previous uptrend lines to give investors an idea of where important technical cushions lie.\u00a0 As for the topside, the Cable still faces multiple downtrend lines along with 10\/29 and 11\/20 highs.\u00a0 Meanwhile, it will be interesting to see how the Cable interacts with its psychological 1.65 area.\u00a0 Furthermore, investors should monitor how the S&P futures deal with their own psychological 1100 level since the futures are normally negatively correlated to the Dollar.\u00a0 Data-wise, investors will be paying close attention to Monday\u2019s wave of EU Flash PMI data followed by Britain\u2019s Inflation Report Hearings and America\u2019s Prelim GDP on Tuesday.\u00a0 Tuesday\u2019s data appears to carry the most weight for the Pound.\u00a0 Therefore, we should get a good idea of whether today\u2019s setback is only temporary or signifies a more lasting trend.<\/p>\n

Present Price: 1.6494<\/p>\n

Resistances: 1.6540, 1.6578, 1.6606, 1.6634, 1.6664, 1.6694, 1.6730<\/p>\n

Supports: 1.6489, 1.6457, 1.6432, 1.6412, 1.6383, 1.6364, 1.6327<\/p>\n

Psychological: 1.65, November and Lows, 1.70<\/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 undergoing an intense pullback today, dropping beneath all of our previous uptrend lines along with 11\/12 lows.\u00a0 The Pound is getting hit by a report from Nationwide and an analyst poll from Bloomberg implying Britian\u2019s housing recovery may be overdone and analysts are expecting a pullback in prices … <\/p>\n

Continue reading “GBP\/USD Sells Off Sharply to Psychological 1.65 Zone”<\/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-4928","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4928","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=4928"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4928\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}