{"id":7089,"date":"2010-02-24T11:53:37","date_gmt":"2010-02-24T16:53:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7089"},"modified":"2010-02-24T11:53:37","modified_gmt":"2010-02-24T16:53:37","slug":"gbpusd-tests-tuesday-lows-amid-pounds-relative-weakness","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/24\/gbpusd-tests-tuesday-lows-amid-pounds-relative-weakness\/","title":{"rendered":"GBP\/USD Tests Tuesday Lows Amid Pound\u2019s Relative Weakness"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is still trading well below its psychological 1.55 level as the Pound experiences a relative weakness, highlighted by today\u2019s pop in the EUR\/GBP.\u00a0 Although the UK was quiet on the data front today, a BoE policy maker, Adam Posen, reiterated King\u2019s statement that the central bank is prepared to expand liquidity should the UK economy deteriorate further.\u00a0 On the other hand, Posen also stated that the BoE may need to find a way to tighten should the economic recovery pick up steam.\u00a0 In essence, Posen affirmed the BoE\u2019s new flexible monetary policy stance.\u00a0 The possibility of looser liquidity could be what is weakening the Pound today.\u00a0 Meanwhile, investors are \"\"<\/a>waiting for U.S. New Home Sales data along with Bernanke\u2019s Congressional testimony.\u00a0 Strong housing data would weigh on the Cable with investors favoring the U.S. economy.\u00a0 On the other hand, weak housing data could buoy the Cable and the risk trade.\u00a0 Furthermore, investors will be eyeing Bernanke\u2019s testimony for any hints in regards to the Fed\u2019s future plans and specifically the Fed Chief\u2019s reaction to inquiries concerning the recent 25 basis point hike in the discount rate.\u00a0 Should Bernanke happen to imply additionally tightening measures down the road, this could apply downward pressure on the Cable since tighter liquidity in the U.S. is a Dollar positive.\u00a0 Meanwhile, it will be interesting to see if the Cable can hold above 2\/23 and previous February lows.\u00a0 King will address the general public tomorrow and the UK will release CBI Realized Sales data.\u00a0 It wouldn\u2019t be surprising to see King maintain the BoE\u2019s flexible monetary policy stance for the time being.\u00a0 All eyes will likely remain on the U.S. tomorrow as Bernanke continues his testimony along with the release of U.S. Durable Goods Orders and weekly Unemployment Claims.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday and 2\/23 highs.\u00a0 Additionally, the 1.55 level could serve as a technical barrier should it be tested.\u00a0 As for the downside, the Cable has multiple uptrend lines serving as technical cushions (off screen) along with 2\/23 and 2\/18 lows.<\/p>\n

Present Price: 1.5410<\/p>\n

Resistances: 1.5415, 1.5436, 1.5458, 1.5482, 1.5503, 1.5524, 1.5543<\/p>\n

Supports: 1.5390, 1.5365, 1.5348, 1.5317, 1.5290, 1.5263, 1.5226<\/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 is still trading well below its psychological 1.55 level as the Pound experiences a relative weakness, highlighted by today\u2019s pop in the EUR\/GBP.\u00a0 Although the UK was quiet on the data front today, a BoE policy maker, Adam Posen, reiterated King\u2019s statement that the central bank is prepared to … <\/p>\n

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