{"id":5800,"date":"2010-01-12T11:40:22","date_gmt":"2010-01-12T16:40:22","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5800"},"modified":"2010-01-12T11:40:22","modified_gmt":"2010-01-12T16:40:22","slug":"gbpusd-consolidates-as-trend-lines-converge","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/12\/gbpusd-consolidates-as-trend-lines-converge\/","title":{"rendered":"GBP\/USD Consolidates as Trend Lines Converge"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is consolidating above our uptrend lines and the psychological 1.60 level as the EUR\/USD experiences similar activity.\u00a0 Investors seem a bit indecisive as they digest liquidity tightening in China along with a downbeat earnings report from Alcoa.\u00a0 Meanwhile, Britain\u2019s Trade Balance printed in line with analyst expectations, continuing a theme of strong UK data.\u00a0 However, more attention will likely be placed on tomorrow\u2019s Manufacturing Production number.\u00a0 A solid Manufacturing Production figure could key a pop in the Pound since UK data has been encouraging so far this month.\u00a0 Hence, investors should keep an eye on activity in the EUR\/GBP for a directional movement.\u00a0 Meanwhile, the highlight of the week is still on deck with U.S. Retail Sales and an ECB policy meeting on Thursday.\u00a0 Strong U.S. Retail Sales could deflate recent strength in the Cable, while a weak number would likely entice investors to sell off the Greenback and head for the risk trade again.\u00a0 Any dovish language from the ECB could create speculation that the BoE will approach its monitory policy with a similar attitude, a positive catalyst for the Cable.\u00a0 Overall, the contrasting headwinds are keeping the Cable and EUR\/USD at bay and we will have to wait and see how upcoming data and news impact the Dollar.<\/p>\n

Technically speaking, yesterday\u2019s rally has created some breathing room between present price and the psychological 1.60 level once again.\u00a0 However, the Cable still faces multiple downtrend lines along with previous January highs.\u00a0 Furthermore, the 12\/9-12\/15 trading range could prove to be a solid barrier should it be reached.\u00a0 Therefore, quite a few obstacles remain considering the extent of December\u2019s downturn.\u00a0 As for the downside, the Cable has multiple uptrend lines serving as technical cushions along with the psychological 1.60 level and previous January lows.\u00a0 Meanwhile, our 3rd tier uptrend line and 1st tier downtrend line are headed for a collision and we notice a similar occurrence in the EUR\/USD.\u00a0 Hence, the FX markets could be in for some volatility soon.<\/p>\n

Present Price: 1.6135<\/p>\n

Resistances: 1.6162, 1.6181, 1.6219, 1.6246, 1.6286, 1.6318<\/p>\n

Supports: 1.6108, 1.6071, 1.6052, 1.6028, 1.5991, 1.5950<\/p>\n

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

(click to enlarge)<\/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 consolidating above our uptrend lines and the psychological 1.60 level as the EUR\/USD experiences similar activity.\u00a0 Investors seem a bit indecisive as they digest liquidity tightening in China along with a downbeat earnings report from Alcoa.\u00a0 Meanwhile, Britain\u2019s Trade Balance printed in line with analyst expectations, continuing a … <\/p>\n

Continue reading “GBP\/USD Consolidates as Trend Lines Converge”<\/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-5800","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5800","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=5800"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5800\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}