{"id":5194,"date":"2009-12-09T12:20:03","date_gmt":"2009-12-09T17:20:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5194"},"modified":"2009-12-09T12:20:03","modified_gmt":"2009-12-09T17:20:03","slug":"gbpusd-declines-with-broad-based-dollar-strength","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/09\/gbpusd-declines-with-broad-based-dollar-strength\/","title":{"rendered":"GBP\/USD Declines with Broad-Based Dollar Strength"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is moving lower with the EUR\/USD as we continue to witness risk-averse money flows.\u00a0 The recent wave of negative psychology events continues after Standard & Poor\u2019s announced it is lowering Spain\u2019s credit rating outlook to negative.\u00a0 The negative outlook in Spain adds onto debt worries in Dubai and a downgrade of Greece\u2019s national debt.\u00a0 Fears of government debt over-exposure has increased investor uncertainty once again, placing downward pressure on the Cable as investors snap up the Dollar for safety.\u00a0 In the UK, Chancellor announced there will be a one-time, 50% tax on bank employee bonus and the national tax rate will be raised in 2011 in an effort to reduce the nation\u2019s swelling debt.\u00a0 The concept of higher taxes takes a bite out of expected consumption, a negative catalyst for the UK economy.<\/p>\n

In addition to today\u2019s negative psychological developments, Britain released a trade balance which was 200 million Pounds below analyst expectations.\u00a0 Hence, imports are outweighing exports, resulting in larger Pound outflows and consequently a weaker currency.\u00a0 However, investor focus likely remains on tomorrow\u2019s BoE monetary policy meeting in conjunction with America\u2019s Trade Balance in the afternoon.\u00a0 Although the BoE is expected to keep its benchmark rate and QE package unchanged, the central bank has been prone to induce monetary shocks in the past.\u00a0 Therefore, investors will be paying close attention to whether the BoE\u2019s monetary policy stance has altered from the central bank\u2019s previous meeting.<\/p>\n

Technically speaking, the Cable has dipped below key November lows and is presently approaching our 2nd tier uptrend line.\u00a0 Hence, a downward pressure remains on the Cable.\u00a0 That being said, the currency pair does have our 1st and 2nd tier uptrend lines serving as technical cushions along with the psychological 1.60 area should it be tested.\u00a0 As for the topside, the Cable faces multiple downtrend lines due to recent weakness.\u00a0 Additionally, the Cable has 12\/07 and 12\/04 highs serving as technical barriers along with the psychological 1.65 level.<\/p>\n

Present Price: 1.6222<\/p>\n

Resistances: 1.6246, 1.6260, 1.6284, 1.6325, 1.6346, 1.6371<\/p>\n

Supports: 1.6200, 1.6163, 1.6133, 1.6113, 1.6098, 1.6049<\/p>\n

Psychological: 1.60, 1.65<\/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 moving lower with the EUR\/USD as we continue to witness risk-averse money flows.\u00a0 The recent wave of negative psychology events continues after Standard & Poor\u2019s announced it is lowering Spain\u2019s credit rating outlook to negative.\u00a0 The negative outlook in Spain adds onto debt worries in Dubai and a … <\/p>\n

Continue reading “GBP\/USD Declines with Broad-Based Dollar Strength”<\/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-5194","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5194","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=5194"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5194\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}