{"id":6104,"date":"2010-01-21T12:16:22","date_gmt":"2010-01-21T17:16:22","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6104"},"modified":"2010-01-21T12:16:22","modified_gmt":"2010-01-21T17:16:22","slug":"gbpusd-stabilizes-following-sizable-intraday-losses","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/21\/gbpusd-stabilizes-following-sizable-intraday-losses\/","title":{"rendered":"GBP\/USD Stabilizes Following Sizable Intraday Losses"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has bounced off of our 3rd tier uptrend line after experiencing a large leg down during the Asia trading session.\u00a0 The Cable finally participated in the broad-based Dollar strength taking place over the last couple days after pricing data from China printed hotter than anticipated.\u00a0 The rise in China\u2019s CPI and PPI indicates there could be further tightening down the road since the government doesn\u2019t want the economy to overheat.\u00a0 Tighter liquidity in China could have a noticeable impact on the performance of the global economy since China has been an engine driving the recovery from the nadir of the recession.\u00a0 In addition to the news from China, the UK released M4 Money Supply data which was shockingly low (-1.1%).\u00a0 This is the largest decline in the money supply since the beginning of the recession and could have placed further downward pressure on the Cable today.\u00a0 Meanwhile, investors are awaiting the Philly Index from the U.S. followed by Obama\u2019s proposal for new financial regulation.\u00a0 Should the Philly print weak and investors take Obama\u2019s proposal as a negative for the U.S. economy, we could witness further weakness in the Dollar as confidence surrounding America\u2019s recovery wanes.\u00a0 Speaking of which, the primary reason behind the Greenback\u2019s weakness over the past hour or so is the much higher than expected weekly Unemployment Claims figure.\u00a0 Higher unemployment could discourage the Fed from tightening liquidity any time soon, a Dollar negative.\u00a0 The UK will release Retail Sales tomorrow and investors are expecting growth of 1.3%, which would be the largest growth rate since January of this year.<\/p>\n

Technically speaking, as we mentioned the Cable has held up very well considering the plight of the EUR\/USD.\u00a0 The Cable has held strong above our 4th tier uptrend line and still has multiple uptrend lines serving as technical cushions along with 1\/15 and 1\/13 lows.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with 1\/15 and 1\/19 highs.\u00a0 Furthermore, the psychological 1.645 area could prove to be a technical barrier should it be tested.<\/p>\n

Present Price: 1.6315<\/p>\n

Supports: 1.6262, 1.6238, 1.6214, 1.6184, 1.6161, 1.6137<\/p>\n

Resistances: 1.6303, 1.6318, 1.6340, 1.6360, 1.6379, 1.6407<\/p>\n

Psychological: 1.60, 1.65, January 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 has bounced off of our 3rd tier uptrend line after experiencing a large leg down during the Asia trading session.\u00a0 The Cable finally participated in the broad-based Dollar strength taking place over the last couple days after pricing data from China printed hotter than anticipated.\u00a0 The rise in China\u2019s … <\/p>\n

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