{"id":7050,"date":"2010-02-23T11:54:25","date_gmt":"2010-02-23T16:54:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7050"},"modified":"2010-02-23T11:54:25","modified_gmt":"2010-02-23T16:54:25","slug":"gbpusd-stumbles-on-weak-mortgage-approvals","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/23\/gbpusd-stumbles-on-weak-mortgage-approvals\/","title":{"rendered":"GBP\/USD Stumbles on Weak Mortgage Approvals"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has registered a large leg down after breaching its psychological 1.55 level.\u00a0 BBA Mortgage Approvals much weaker than expected, sparking speculation that the economic recovery is cooling.\u00a0 Additionally, markets received discouraging EU data today, including the weakest French Consumer Spending reading since October 2006.\u00a0 Hence, we\u2019re viewing a route of the risk trade once again with fundamentals disappointing.\u00a0 Meanwhile, King reiterated the BoE\u2019s flexible monetary stance.\u00a0 The central bank is taking the middle road by stating it is ready to be proactive should inflation either heat up faster than expected or dip to deflationary levels once again.\u00a0 Such a flexible stance implies upcoming UK data could yield more volatility, particularly pricing \"\"<\/a>numbers.\u00a0 For the time being investors are awaiting U.S. CB Consumer Confidence data.\u00a0 Should U.S. consumer confidence perform stronger than anticipated, the risk trade could experience further downward pressure with investors favoring the Dollar over the Pound and Euro based on comparative economic strength.\u00a0 On the other hand, strong U.S. data could encourage investors that the global economic recovery is on track and give a little boost to the risk trade.\u00a0 Hence, it will be interesting to see how the Dollar reacts to today\u2019s release, particularly if it prints stronger than anticipated.\u00a0 Meanwhile, although the Cable has experienced a setback it remains above previous February lows.\u00a0 Hence, the currency pair still has an opportunity to salvage some of the positive momentum built up since 2\/19.\u00a0 Although the UK will be quiet on the data front tomorrow, the U.S. will release New Home Sales and Bernanke will testify before congress.\u00a0 Therefore, FX markets could remain activity, especially if Bernanke gives any unexpected insight in regards to the Fed\u2019s recent 25 basis point hike in the discount rate.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday highs and the psychological 1.55 level.\u00a0 As for the downside, the Cable has multiple uptrend lines serving as technical cushions (off screen) along with intraday and 2\/19 lows.<\/p>\n

Present Price: 1.5441<\/p>\n

Resistances: 1.5458, 1.5482, 1.5503, 1.5524, 1.5543<\/p>\n

Supports: 1.5428, 1.5407, 1.5390, 1.5365, 1.5348<\/p>\n

Psychological: February lows, 1.55, 1.53<\/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 registered a large leg down after breaching its psychological 1.55 level.\u00a0 BBA Mortgage Approvals much weaker than expected, sparking speculation that the economic recovery is cooling.\u00a0 Additionally, markets received discouraging EU data today, including the weakest French Consumer Spending reading since October 2006.\u00a0 Hence, we\u2019re viewing a route … <\/p>\n

Continue reading “GBP\/USD Stumbles on Weak Mortgage Approvals”<\/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-7050","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7050","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=7050"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7050\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}