{"id":6548,"date":"2010-02-04T12:39:14","date_gmt":"2010-02-04T17:39:14","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6548"},"modified":"2010-02-04T12:39:14","modified_gmt":"2010-02-04T17:39:14","slug":"gbpusd-crashes-as-dollar-makes-another-bull-run","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/04\/gbpusd-crashes-as-dollar-makes-another-bull-run\/","title":{"rendered":"GBP\/USD Crashes as Dollar Makes Another Bull Run"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable is crashing with the EUR\/USD after the BoE issued a more Dovish monetary statement than anticipated.\u00a0 Although the BoE halted its QE program as expected, Mervin King stated that the possibility of more QE is on the table such economic conditions deteriorate.\u00a0 Hence, despite some positive economic data lately the BoE is opting to take a wait and see approach to determine whether the global economic recovery has hit a bump in the road or if we are beginning a more protracted pullback.\u00a0 Furthermore, it seems all central banks want to gauge how tighter liquidity measures in China will impact global growth.\u00a0 The wait-and-see policies issued from central banks have heightened investor uncertainty, leading investors to the Dollar as a safe haven.\u00a0 Today\u2019s weaker than expected Halifax HPI data didn\u2019t help matters either, adding further downward pressure on the Cable.\u00a0 Meanwhile, investors are also reacting to a pop in U.S. Unemployment Claims and Productivity.\u00a0 The negative U.S. data set has ignited upward momentum in the Dollar as investors question the sustainability of the global economic recovery.\u00a0 The UK will release PPI tomorrow.\u00a0 Even though a strong PPI release could help buoy the Pound, even Mervin King disregarded this month\u2019s pop in CPI as an abnormal affair.\u00a0 Attention will focus in on the U.S. during the afternoon with the headline Unemployment Rate and Non-Farm Employment Change data being released.\u00a0 Therefore, volatility could remain at a heightened state as the trading week comes to a close.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday and 2\/3 highs.\u00a0 The Cable has dropped below December lows, a negative development technically.\u00a0 The currency pair now has September and October 2009 lows serving as technical cushions.\u00a0 Furthermore, we\u2019ve created some new uptrend lines (off screen).\u00a0 Investors should take note our new uptrend lines run through the 1.55 area, implying the Cable could have some more room to go to the downside.<\/p>\n

Present Price: 1.5781<\/p>\n

Resistances: 1.5798, 1.5818, 1.5829, 1.5848, 1.5861, 1.5876<\/p>\n

Supports: 1.5775, 1.5758, 1.5717, 1.5690, 1.5675, 1.5639, 1.5601<\/p>\n

Psychological: 1.55, September and October 2009 lows<\/p>\n

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

(click chart 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 is crashing with the EUR\/USD after the BoE issued a more Dovish monetary statement than anticipated.\u00a0 Although the BoE halted its QE program as expected, Mervin King stated that the possibility of more QE is on the table such economic conditions deteriorate.\u00a0 Hence, despite some positive economic data lately … <\/p>\n

Continue reading “GBP\/USD Crashes as Dollar Makes Another Bull Run”<\/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-6548","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6548","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=6548"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6548\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}