{"id":5429,"date":"2009-12-21T11:56:04","date_gmt":"2009-12-21T16:56:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5429"},"modified":"2009-12-21T11:56:04","modified_gmt":"2009-12-21T16:56:04","slug":"gbpusd-tests-friday-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/21\/gbpusd-tests-friday-lows\/","title":{"rendered":"GBP\/USD Tests Friday lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is trading off intraday highs and seems to be considering a retest of Friday lows despite present stability in the Dollar and gold.\u00a0 FX markets are quiet today due to the lack of economic data and the wind down towards Christmas.\u00a0 However, the Pound is losing some of its relative strength today, highlighted by a pop in the EUR\/GBP.\u00a0 Perhaps investors are finally reacting to the weak UK consumption data released at the end of last week.\u00a0 The UK will enter the newswires again tomorrow with the release of its Current Account and Final GDP data.\u00a0 Better than expected data could help the Pound retain its recent strength and keep the Cable above its psychological 1.60 level.\u00a0 On the other hand, weaker than expected UK numbers combined with strong U.S. econ data could extend the Cable\u2019s downturn as investors favor the Greenback.\u00a0 The U.S. will release Final GDP data of its own along with Existing Home Sales.\u00a0 Should U.S. econ data continue to top analyst expectations, then the FX markets may exhibit further broad-based Dollar strength.\u00a0 Meanwhile, investors will likely have their attention focused on Wednesday BoE meeting.\u00a0 Although the central bank is expected to keep its recent monetary policy intact to see how recent QE measures play out, it will be interesting to see if there is a slight shift in the BoE\u2019s monetary stance.\u00a0 Due to recent improvements in unemployment and prices, the BoE may deem it appropriate to exert a more hawkish tone in its monetary policy statement.\u00a0 Hence, volatility in the Cable could pick up a bit before Christmas as investors react to the BoE\u2019s decision.<\/p>\n

Technically speaking, the Cable\u2019s large pullback this month has sent the currency pair below some key technical levels.\u00a0 Hence, it\u2019s possible the Cable could be entering a more protracted downturn should the currency pair not stage a recovery above our 4th tier uptrend line, which runs through October lows.\u00a0 Meanwhile, we\u2019ve installed multiple uptrend lines running through March lows.\u00a0 The fact we are now using March lows, or the 1.40 area, to create uptrend lines gives investors an idea of the extent of the damage inflicted by the Cable\u2019s December pullback.\u00a0 Meanwhile, the Cable does have some near-term technical supports in the form of our 2nd and 3rd tier uptrend lines along with the psychological 1.60 level and 9\/24 lows.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with 12\/18 and 12\/16 highs.\u00a0 Additionally, the psychological 1.65 area should serve as a technical barrier should it be tested.<\/p>\n

Present Price: 1.6105<\/p>\n

Resistances: 1.6131, 1.6157, 1.6182, 1.6196, 1.6221, 1.6252<\/p>\n

Supports: 1.6090, 1.6073, 1.6051, 1.6033, 1.5999, 1.5972<\/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 trading off intraday highs and seems to be considering a retest of Friday lows despite present stability in the Dollar and gold.\u00a0 FX markets are quiet today due to the lack of economic data and the wind down towards Christmas.\u00a0 However, the Pound is losing some of its … <\/p>\n

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