{"id":5657,"date":"2010-01-05T11:40:10","date_gmt":"2010-01-05T16:40:10","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5657"},"modified":"2010-01-05T11:40:10","modified_gmt":"2010-01-05T16:40:10","slug":"gbpusd-sinks-back-towards-1-60","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/05\/gbpusd-sinks-back-towards-1-60\/","title":{"rendered":"GBP\/USD Sinks Back Towards 1.60"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable is logging solid losses today despite yesterday\u2019s encouraging data set.\u00a0 Today the UK did release a Construction PMI which was a bit weaker than expected.\u00a0 However, this data point alone doesn\u2019t really explain why the Pound is exhibiting such a relative weakness, as highlighted by large gains in the EUR\/GBP.\u00a0 Hence, there seems to be an external force driving the Cable lower outside of its Dollar correlation, and we can\u2019t quite put our finger on it.\u00a0 It is possible investors are keeping the Pound in check around its psychological 1.60 level ahead of Thursday\u2019s BoE meeting despite the fact the central bank is expected to keep its monetary policy as is until February\u2019s meeting.\u00a0 Another possibility could be the crippling cold front moving through the UK at the moment which has brought much of Britain\u2019s transportation to a halt.\u00a0 Whatever the reason, it will be interesting to see if the Cable can stabilize above 1.60 and 12\/22 lows.\u00a0 Tomorrow could yield further volatility with the UK releasing its Halifax HPI and Services PMI data points.\u00a0 The Services PMI number will be in focus since the services industry comprises roughly 70% of the UK\u2019s GDP.\u00a0 Also in focus will be the U.S. Non-Farm Employment Change figure.\u00a0 A turnaround in U.S. unemployment is what triggered the Dollar\u2019s December rally.\u00a0 Therefore, tomorrow\u2019s ADP number could prove to be a market mover.<\/p>\n

Technically speaking, it seems the Cable\u2019s psychological 1.60 level is serving as a technical cushion at the moment along with our 1st and 2nd tier uptrend lines.\u00a0 Furthermore, 12\/22 and 12\/30 lows could serve as solid technical supports should they be tested.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with 1\/04 and 12\/16 highs.\u00a0 Therefore, the Cable has quite a few hefty obstacles to overcome to the topside considering the extent of December\u2019s downturn.<\/p>\n

Present Price: 1.6031<\/p>\n

Resistances: 1.6058, 1.6085, 1.6107, 1.6141, 1.6163, 1.6195<\/p>\n

Supports: 1.6024, 1.5995, 1.5973, 1.5928, 1.5901, 1.5876<\/p>\n

Psychological: 1.60, December highs and lows<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> 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> 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 logging solid losses today despite yesterday\u2019s encouraging data set.\u00a0 Today the UK did release a Construction PMI which was a bit weaker than expected.\u00a0 However, this data point alone doesn\u2019t really explain why the Pound is exhibiting such a relative weakness, as highlighted by large gains in the … <\/p>\n

Continue reading “GBP\/USD Sinks Back Towards 1.60”<\/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-5657","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5657","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=5657"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5657\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}