{"id":6792,"date":"2010-02-12T10:47:08","date_gmt":"2010-02-12T15:47:08","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6792"},"modified":"2010-02-12T10:47:08","modified_gmt":"2010-02-12T15:47:08","slug":"gbpusd-holds-above-february-lows-as-investors-await-u-s-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/12\/gbpusd-holds-above-february-lows-as-investors-await-u-s-data\/","title":{"rendered":"GBP\/USD Holds Above February Lows as Investors Await U.S. Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable sold off sharply from intraday highs and our 4th tier downtrend line after EU GDP data disappointed and China surprised markets by raising its required reserve ratio by another 50 basis points.\u00a0 Uncertainty and underperformance in the EU continues to rattle FX markets, resulting in another wave of Dollar strength.\u00a0 Additionally, China may be sending a message that it plans on pursuing a more conservative monetary policy during the year of the tiger by tightening liquidity a day before the Chinese New Year.\u00a0 Tighter monetary policy in China could have a considerable impact on global growth considering China has been an engine driving the economic recovery from the nadir of the Great Recession.\u00a0 Therefore, hawkish monetary policy actions can have a profound impact on the FX markets, as implied by a large leg up in the Dollar following China\u2019s announcement.\u00a0\u00a0 Meanwhile, investors are awaiting retail sales and consumer confidence data from the U.S.\u00a0 The UK has been quiet on the data front since the release of the BoE\u2019s inflation report.\u00a0 Therefore, broad-based movements in the Dollar could continue to drive the Cable for the time being.\u00a0 Speaking of the BoE\u2019s inflation report, it is encouraging that the Cable has been able to hold above its previous February lows considering the volatility in the Euro.\u00a0 After all, the BoE did downgrade its outlook for 2010 UK GDP and inflation growth.\u00a0 However, should today\u2019s U.S. data prove to be positive for the Dollar the Cable may opt to retest its February lows.\u00a0 Meanwhile, the Cable is building up a solid base above its psychological 1.55 level.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday and 2\/10 highs.\u00a0 As for the downside, the Cable has multiple uptrend liens serving as technical cushions along with 2\/2 lows and the psychological 1.55 level should it be tested.<\/p>\n

Present Price: 1.5620<\/p>\n

Resistances: 1.5621, 1.5640, 1.5659, 1.5684, 1.5717, 1.5744<\/p>\n

Supports: 1.5593, 1.5572, 1.5558, 1.5533, 1.5502<\/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 sold off sharply from intraday highs and our 4th tier downtrend line after EU GDP data disappointed and China surprised markets by raising its required reserve ratio by another 50 basis points.\u00a0 Uncertainty and underperformance in the EU continues to rattle FX markets, resulting in another wave of Dollar … <\/p>\n

Continue reading “GBP\/USD Holds Above February Lows as Investors Await U.S. 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-6792","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6792","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=6792"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6792\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}