{"id":6656,"date":"2010-02-08T13:03:33","date_gmt":"2010-02-08T18:03:33","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6656"},"modified":"2010-02-08T13:03:33","modified_gmt":"2010-02-08T18:03:33","slug":"gbpusd-wavers-around-friday-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/08\/gbpusd-wavers-around-friday-lows\/","title":{"rendered":"GBP\/USD Wavers Around Friday Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is hovering around Friday lows after continuing its extensive decline in the wake of strong UK PPI data.\u00a0 Friday\u2019s resurgent PPI data couples with a similar CPI reading, indicating a pop in prices which could discourage the BoE from tightening liquidity.\u00a0 However, Mervyn King recently stated that the central bank is not overly concerned about the recent rise in prices and implied that it is not indicative of a more lasting trend.\u00a0 Regardless, there are many other reasons for the BoE to take a wait and see approach, including economic uncertainty in the EU and liquidity tightening in China.\u00a0 Therefore, the Cable showed little hesitation in participating with last week\u2019s route from the risk trade.\u00a0 The risk trade will be relatively quiet for the next 24 hours, giving the risk trade an opportunity to calm down as analysts and investors assess the damage.\u00a0 However, the data wire will begin to heat up again during Wednesday\u2019s Asia trading session with key economic data releases from China and Australia.\u00a0 Furthermore, the BoE will release its inflation report accompanied by a speech from King.\u00a0 Meanwhile, investors should keep an eye on the news wire for any significant news concerning Greece and other troubled EU economies.\u00a0 As we saw last week, developments in these countries can yield high volatility in the FX markets.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday and 2\/5 highs.\u00a0 We\u2019ve created some new uptrend lines, albeit tight ones, to serve as technical cushions along with the psychological 1.55 area.<\/p>\n

Present Price: 1.5584<\/p>\n

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

Supports: 1.5572, 1.5558, 1.5533, 1.5502, 1.5470, 1.5444<\/p>\n

Psychological: 1.55<\/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 hovering around Friday lows after continuing its extensive decline in the wake of strong UK PPI data.\u00a0 Friday\u2019s resurgent PPI data couples with a similar CPI reading, indicating a pop in prices which could discourage the BoE from tightening liquidity.\u00a0 However, Mervyn King recently stated that the central … <\/p>\n

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