{"id":5285,"date":"2009-12-15T13:11:51","date_gmt":"2009-12-15T18:11:51","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5285"},"modified":"2009-12-15T13:11:51","modified_gmt":"2009-12-15T18:11:51","slug":"gbpusd-holds-strong-following-positive-pricing-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/15\/gbpusd-holds-strong-following-positive-pricing-data\/","title":{"rendered":"GBP\/USD Holds Strong Following Positive Pricing Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is holding strong around our 1st tier uptrend line after both CPI and RPI data points printed one basis point hotter than analyst expectations.\u00a0 Hence, the recovery in UK inflation appears on track.\u00a0 This should be reassuring to the BoE since prices are nearing its comfort level of 2% growth.\u00a0 U.S. PPI data printed 10 basis points hotter than anticipated, a positive development for the concept of a tighter monetary policy from the Fed.\u00a0 However, U.S. manufacturing and production data printed mixed, taking a bit of wind out of the Dollar\u2019s sails.\u00a0 Mixed fundamental data from the U.S. is helping stabilize both the Cable and EUR\/USD as gold stages a little rally.\u00a0 Meanwhile, the EUR\/GBP has taken another step down, indicating a relative strength in the Pound likely stemming from encouraging UK CPI and RPI results.\u00a0\u00a0 The UK will release some more data points tomorrow, most notably a new CCC figure.\u00a0 Should the UK\u2019s CCC come in stronger than expected like the last release this could help add onto the Pound\u2019s present relative strength.\u00a0 However, a discouraging CCC number could damage the argument from a tighter monetary policy from the BoE, yielding weakness in the Cable.<\/p>\n

In addition to more key data from the UK and EU, the U.S. will release Building Permits along with its CPI data followed by the Fed\u2019s announcement of its monetary policy decision.\u00a0 Although the Fed is likely to keep its monetary policy unchanged, investors will be paying close attention to the Fed\u2019s wording to monitor whether the central bank takes a more hawkish stance in light of positive developments in U.S. unemployment and consumption data.\u00a0 That being said, any unexpected action from the Fed would likely yield noticeable volatility due to the psychological influence of central banks on the FX markets.\u00a0 Regardless, activity could pick up in the next 24-48 considering the wealth of data and news investors will be digesting.<\/p>\n

Technically speaking, the Cable still still flirting with dangerous territory since our 2nd tier uptrend line runs through October lows.\u00a0 Hence, should our 2nd tier uptrend line give way, we could witness another sizable leg down towards the 1.58-1.60 area.\u00a0 Below our 2nd tier uptrend line the Cable does have our 1st tier uptrend line (off chart) serving as a technical cushion along with the psychological 1.60 level, September lows and October lows.\u00a0 As for the topside, the Cable still faces multiple downtrend lines along with 12\/9 and 12\/7 highs.\u00a0 Furthermore, the psychological 1.65 level could serve as a technical barrier should it be tested.<\/p>\n

Present Price: 1.6218<\/p>\n

Resistances: 1.6252, 1.6265, 1.6286, 1.6325, 1.6346, 1.6371<\/p>\n

Supports: 1.6205, 1.6186, 1.6163, 1.6133, 1.6113, 1.6098<\/p>\n

Psychological: 1.60, 1.65, September and October 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 holding strong around our 1st tier uptrend line after both CPI and RPI data points printed one basis point hotter than analyst expectations.\u00a0 Hence, the recovery in UK inflation appears on track.\u00a0 This should be reassuring to the BoE since prices are nearing its comfort level of 2% … <\/p>\n

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