{"id":7252,"date":"2010-03-02T11:22:04","date_gmt":"2010-03-02T16:22:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7252"},"modified":"2010-03-02T11:22:04","modified_gmt":"2010-03-02T16:22:04","slug":"gbpusd-stabilizes-around-1-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/02\/gbpusd-stabilizes-around-1-50\/","title":{"rendered":"GBP\/USD Stabilizes Around 1.50"},"content":{"rendered":"

The Cable has managed to get back around its psychological 1.50 area following yesterday\u2019s large leg lower.\u00a0 A confident rate raise from the RBA has helped buoy the risk trade as yesterday\u2019s negative psychological forces cool.\u00a0 However, yesterday\u2019s downturn in the Cable was a loud statement and the UK\u2019s election\/debt uncertainties certainly haven\u2019t disappeared.\u00a0 Hence, investors should keep an active eye on the UK and EU news wires during the European trading \"\"<\/a>session.\u00a0 Today\u2019s UK Construction PMI did print a tad below analyst expectations, though this release doesn\u2019t seem to be having too much of an impact on the Cable.\u00a0 The Pound is still at a comparative disadvantage, reflected by the EUR\/GBP\u2019s outbreak.\u00a0 Although the U.S. data wire is relatively quiet today, activity could pick back up tomorrow with the UK releasing its Services PMI and Halifax HPI data.\u00a0 The U.S. will also release its own Services PMI along with a much anticipated ADP Non-Farm Employment Change figure.\u00a0 However, investors should keep in mind that more emphasis is normally placed on Friday\u2019s headline number rather than tomorrow\u2019s ADP due to its unreliability.\u00a0 Regardless, volatility could kick back in, particularly with the BoE and ECB making their monetary policy decisions on Thursday.\u00a0 Investors will enter the BoE\u2019s meeting with a bit of uncertainty since the central bank\u2019s governors have been erring on the dovish side lately.\u00a0 Any surprise increase in QE could send the Cable reeling lower again since the Fed has maintained a neutral policy stance.\u00a0 Meanwhile, it will be interesting to see whether the Cable can garner enough strength to continue its consolidation around 1.50.<\/p>\n

Technically speaking, we\u2019ve formed some new uptrend lines for the Cable to compensate for yesterday\u2019s selloff.\u00a0 Our uptrend lines run through 4\/30\/2009 levels, or the 1.47-1.48 area.\u00a0 Hence, the Cable could continue to have support around this area over the near-term.\u00a0 As for the topside, the Cable faces multiple downtrend lines and faces an uphill battle.<\/p>\n

Present Price: 1.4974<\/p>\n

Resistances: 1.4974, 1.4994, 1.5013, 1.5038, 1.5071, 1.5112<\/p>\n

Supports: 1.4938, 1.4917, 1.4877, 1.4850, 1.4822, 1.4799<\/p>\n

Psychological: 1.50, March lows<\/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 has managed to get back around its psychological 1.50 area following yesterday\u2019s large leg lower.\u00a0 A confident rate raise from the RBA has helped buoy the risk trade as yesterday\u2019s negative psychological forces cool.\u00a0 However, yesterday\u2019s downturn in the Cable was a loud statement and the UK\u2019s election\/debt uncertainties certainly haven\u2019t disappeared.\u00a0 Hence, … <\/p>\n

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