{"id":6226,"date":"2010-01-26T09:09:09","date_gmt":"2010-01-26T14:09:09","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6226"},"modified":"2010-01-26T09:09:09","modified_gmt":"2010-01-26T14:09:09","slug":"gbpusd-under-selling-pressure-following-weak-gdp-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/26\/gbpusd-under-selling-pressure-following-weak-gdp-data\/","title":{"rendered":"GBP\/USD Under Selling Pressure Following Weak GDP Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is under considerable selling pressure right now after the UK\u2019s Prelim GDP number printed 3 basis points below analyst expectations.\u00a0 Although BBA Mortgage Approvals came about in line, the setback in GDP has delivered another blow to the Pound, adding onto Friday\u2019s disappointing Retail Sales data.\u00a0 Therefore, it seems the improvement in UK employment has not carried through to GDP and consumption.\u00a0 Meanwhile, we recognize a pop in the EUR\/GBP taking place, highlighted by a comparative weakness in the Pound.\u00a0 Additionally, the Pound is experiencing downward pressure from today\u2019s revelation that China\u2019s banks are being aggressive in terms of limiting the amount of new lows after the massive lending spree during the first couple weeks of the year.\u00a0 Tighter liquidity in China is a negative development for the global economic recovery as a whole since China has been an integral part of the turnaround.\u00a0 Therefore, we witnessed another wave of Dollar purchasing during the Asia trading session.\u00a0 Investors will now look forward to today\u2019s U.S. CB Consumer Confidence release.\u00a0 While a positive number would likely lead to further Greenback buying, it will be interesting to see what reaction the FX markets would have to another negative U.S. data point.\u00a0 Yesterday\u2019s disappointing Existing Homes number led to weakness in the Dollar, meaning a similar pattern could occur today.\u00a0 The UK will keep its data train rolling tomorrow with the release of its CBI Realized Sales.\u00a0 Investors will also digest U.S. New Home Sales and a monetary policy decision from the Fed.\u00a0 Hence, it wouldn\u2019t be surprising to experience continued volatility in the Dollar over the next few trading sessions.<\/p>\n

Technically speaking, despite today\u2019s setback in the Cable the currency pair still has multiple uptrend lines serving as technical cushions along with 1\/22 lows and the psychological 1.60 level should it be tested.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with 1\/04, 1\/21 and 1\/15 highs.\u00a0 Therefore, although the Cable\u2019s uptrend line has been dealt a blow today, the currency pair still has some wiggle room on both sides.<\/p>\n

Present Price: 1.6130<\/p>\n

Resistances: 1.6143, 1.6170, 1.6195, 1.6223, 1.6247, 1.6264<\/p>\n

Supports: 1.6119, 1.6092, 1.6073, 1.6048, 1.6023, 1.6001<\/p>\n

Psychological: 1.60, 1.65, January highs and 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 under considerable selling pressure right now after the UK\u2019s Prelim GDP number printed 3 basis points below analyst expectations.\u00a0 Although BBA Mortgage Approvals came about in line, the setback in GDP has delivered another blow to the Pound, adding onto Friday\u2019s disappointing Retail Sales data.\u00a0 Therefore, it seems … <\/p>\n

Continue reading “GBP\/USD Under Selling Pressure Following Weak GDP Data”<\/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-6226","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6226","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=6226"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6226\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}