{"id":6505,"date":"2010-02-03T11:31:32","date_gmt":"2010-02-03T16:31:32","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6505"},"modified":"2010-02-03T11:31:32","modified_gmt":"2010-02-03T16:31:32","slug":"gbpusd-dives-following-negative-services-pmi","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/03\/gbpusd-dives-following-negative-services-pmi\/","title":{"rendered":"GBP\/USD Dives Following Negative Services PMI"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has come crashing down from the perches of its Asia trading session rally.\u00a0 The risk trade rallied across the board after Australia\u2019s trade Balance printed stronger than expected followed by an EU approval of Greece\u2019s plan to reduce its outstanding fiscal debt.\u00a0 However, gains were soon washed away after Britain\u2019s Services PMI data point came in below analyst expectations.\u00a0 UK data has been outperforming lately, making the pullback in services a shock for investors, and the Cable\u2019s ensuing downturn reflected this mental state.\u00a0\u00a0 Services comprise a large part of the UK\u2019s GDP, so weakness in services trumps strength in manufacturing. The Cable\u2019s intraday decline accelerated after U.S. ADP Non-Farm Employment Change data printed stronger than analysts anticipated.\u00a0 Strong U.S. employment numbers led investors to the Dollar as a safe haven due to the recent wave of positive U.S. economic data.\u00a0 Meanwhile, investors are awaiting U.S Services PMI data.\u00a0 An outperformance in U.S. services could paint a stark contrast between the U.S. and UK economies, enticing investors to favor the Dollar further.\u00a0 The BoE and ECB will make monetary policy decisions tomorrow, meaning the Pound could remain very active over the next 24-48 hours.\u00a0 Disregarding today\u2019s services number, the recent wave of encouraging UK today may lead one to believe the BoE would tighten its monetary stance further.\u00a0 However, debt issues in Greece and tightening in China could lead the BoE to err on the cautious side this time around.\u00a0 Either way, the combination of events makes tomorrow\u2019s BoE more interesting and a bit unpredictable.<\/p>\n

Technically speaking, the Cable has multiple uptrend lines serving as technical cushions along with intraday and 2\/2 lows.\u00a0 As for the topside, the Cable still faces multiple downtrend lines along with intraday and 1\/29 highs.\u00a0 Furthermore, the psychological 1.60 area could serve as a technical barrier should it be retested.<\/p>\n

Present Price: 1.5948<\/p>\n

Resistances: 1.5961, 1.5975, 1.5992, 1.6005, 1.6015, 1.6024<\/p>\n

Supports: 1.5937, 1.5921, 1.5900, 1.5876, 1.5863<\/p>\n

Psychological: 1.60,\u00a0 December and October lows<\/p>\n

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

(click to enlarge)<\/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 come crashing down from the perches of its Asia trading session rally.\u00a0 The risk trade rallied across the board after Australia\u2019s trade Balance printed stronger than expected followed by an EU approval of Greece\u2019s plan to reduce its outstanding fiscal debt.\u00a0 However, gains were soon washed away after … <\/p>\n

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