{"id":7121,"date":"2010-02-25T12:12:19","date_gmt":"2010-02-25T17:12:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7121"},"modified":"2010-02-25T12:12:19","modified_gmt":"2010-02-25T17:12:19","slug":"gbpusd-undergoes-heavy-selling-pressure","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/25\/gbpusd-undergoes-heavy-selling-pressure\/","title":{"rendered":"GBP\/USD Undergoes Heavy Selling Pressure"},"content":{"rendered":"

The Cable is under considerable selling pressure today, tumbling below previous February lows amid relative weakness as highlighted by another leg up in the EUR\/GBP.\u00a0 It\u2019s difficult to pinpoint the reason driving the Pounds dive lower.\u00a0 Although Prelim Business Investment printed far below analyst expectations, CBI Realized Sales came in strong.\u00a0 Therefore, the force driving the Pound lower could be fears of the UK\u2019s ties with Greece\u2019s debt.\u00a0 In the past there were \"\"<\/a>rumors circulating that some UK financial institutions have sizable exposure to Greek debt.\u00a0 However, this is merely speculation with no grounds.\u00a0 Hence, we\u2019ll have to wait and see what reasoning there is behind the Pound\u2019s tumble.\u00a0 Considering several psychologically negative news stories have surfaced concerning Greece today, a belief that the Cable\u2019s tumble is associated with troubles in the EU may not be so far-fetched.\u00a0 The S&P and Moody\u2019s warned that they may downgrade Greece\u2019s debt should the government not successfully implement its rescue package.\u00a0 Additionally, Greek government officials have made provocative statements towards Germany, raising fears that the EU will not bail out Greece should its fiscal situation deteriorate further.\u00a0 In addition to fresh uncertainty in Greece, the U.S. released a disconcerting weekly unemployment claims figure while durable goods printed mixed.\u00a0 Negative fundamental developments aren\u2019t proving to be too helpful for the risk trade, placing additional downward pressure on the Cable.\u00a0 Meanwhile, it will be interesting to see if the Cable can stabilize ahead of tomorrow\u2019s UK Revised GDP and HPI data.\u00a0 The U.S. will also release its Prelim GDP data, meaning the FX markets could end the week on a volatile note.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday, 2\/24, 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 along with intraday lows.<\/p>\n

Present Price: 1.5277<\/p>\n

Resistances: 1.5290, 1.5317, 1.5348, 1.5365, 1.5390, 1.5416<\/p>\n

Supports: 1.5253, 1.5235, 1.5195, 1.5171, 1.5145, 1.5126<\/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":"

The Cable is under considerable selling pressure today, tumbling below previous February lows amid relative weakness as highlighted by another leg up in the EUR\/GBP.\u00a0 It\u2019s difficult to pinpoint the reason driving the Pounds dive lower.\u00a0 Although Prelim Business Investment printed far below analyst expectations, CBI Realized Sales came in strong.\u00a0 Therefore, the force driving … <\/p>\n

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