{"id":5045,"date":"2009-12-01T13:45:33","date_gmt":"2009-12-01T18:45:33","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5045"},"modified":"2009-12-01T13:45:33","modified_gmt":"2009-12-01T18:45:33","slug":"gbpusd-rallies-as-gold-tests-1200oz","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/01\/gbpusd-rallies-as-gold-tests-1200oz\/","title":{"rendered":"GBP\/USD Rallies as Gold Tests $1200\/oz"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has cleared our 4th tier uptrend line and its psychological 1.65 level as the currency pair runs higher with the risk trade.\u00a0 Investors are heading back to riskier investment classes after China\u2019s Manufacturing PMI results showed Dubai\u2019s debt issue does not necessarily imply a slowdown in the overall growth of emerging markets.\u00a0 In addition to China\u2019s positive data release, the RBA raised its benchmark rate by another 25 basis points as widely expected.\u00a0 The RBA\u2019s vote of confidence in Australia\u2019s economic recovery is encouraging investors to reconsider the risk trade after the occurrence in Dubai shook FX markets.\u00a0 The Cable is a direct beneficiary of this boost in confidence despite a lighter than expected UK Manufacturing PMI number.\u00a0 However, UK\u2019s economy is more service-based, reducing the weight of manufacturing.\u00a0 Furthermore, Nationwide\u2019s HPI figure printed in line with expectations, implying a stable UK housing market.\u00a0 As a result, the Cable is showing little hesitation to participate in today\u2019s broad-based weakness of the Dollar.<\/p>\n

Meanwhile, gold is knocking on the door of its psychological $1200\/oz level as the S&P futures rally beyond their psychological 1100 level pre-market.\u00a0 Hence, the Cable\u2019s positive correlations are currently creating an environment supportive of further downward movements in the Dollar sound economic fundamentals comply.\u00a0 That being said, investors should also keep an eye on the EUR\/USD and its interaction with our 3rd tier downtrend line as well as November highs should they be tested.\u00a0 A topside breakout in the EUR\/USD could signal a more extensive rally in the FX risk trade, thereby benefitting the Cable.<\/p>\n

Technically speaking, the Cable still faces multiple downtrend lines along with 11\/25 and 11\/17 highs.\u00a0 Our 4th tier downtrend line appears to carry the most weight since it runs through 11\/17 highs.\u00a0 A movement beyond our 4th tier could imply more extensive near-term gains in the Cable.\u00a0 As for the downside, the Cable could find supports in the psychological 1.65 area along with 11\/20, 11\/30, and 11\/27 lows.\u00a0 Additionally, the GBP\/USD has multiple uptrend lines serving as technical cushions.<\/p>\n

Present Price: 1.6596<\/p>\n

Resistances: 1.6616, 1.6634, 1.6673, 1.6707, 1.6730, 1.6748, 1.6790<\/p>\n

Supports: 1.6571, 1.6543, 1.6498, 1.6461, 1.6409, 1.6372<\/p>\n

Psychological: 1.65, November Highs and 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 has cleared our 4th tier uptrend line and its psychological 1.65 level as the currency pair runs higher with the risk trade.\u00a0 Investors are heading back to riskier investment classes after China\u2019s Manufacturing PMI results showed Dubai\u2019s debt issue does not necessarily imply a slowdown in the overall growth … <\/p>\n

Continue reading “GBP\/USD Rallies as Gold Tests $1200\/oz”<\/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-5045","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5045","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=5045"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5045\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}