{"id":7320,"date":"2010-03-04T12:15:59","date_gmt":"2010-03-04T17:15:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7320"},"modified":"2010-03-04T12:15:59","modified_gmt":"2010-03-04T17:15:59","slug":"gbpusd-consolidates-above-1-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/04\/gbpusd-consolidates-above-1-50\/","title":{"rendered":"GBP\/USD Consolidates Above 1.50"},"content":{"rendered":"

The Cable is holding strong above it highly psychological level following solid gains yesterday.\u00a0 UK Services PMI came in much stronger than analyst expectations and registered the highest reading since February 2007.\u00a0 The recovery in services is exactly what the doctor ordered since the UK is a service-oriented economy.\u00a0 The Cable also derived \"\"<\/a>strength from a positive reaction to Greece\u2019s new austerity measures.\u00a0 However, today\u2019s UK HPI number registered a surprising decline, dipping 1.5%, the largest decline since May 2009.\u00a0 Hence, yesterday\u2019s optimism has been dampened by discouraging housing data.\u00a0 Speaking of which, U.S. Pending Home Sales just printed much lower than analyst expectations, sending the Dollar higher as investors divest from the risk trade.\u00a0 Meanwhile, the UK\u2019s BoE meeting came to an uneventful conclusion.\u00a0 The central bank opted to keep its policy unchanged despite some speculation that they might increase QE funding.\u00a0 Although, the BoE did leave the door open for more liquidity should conditions warrant action.\u00a0 It seems the central bank is content with playing it safe before elections considering the reaction we saw in the Pound on Monday after polls revealed a tight race.\u00a0 The UK will release PPI data tomorrow and investors are expecting a flat reading.\u00a0 It will be interesting how producer prices fair considering how hot CPI was last month.\u00a0 Investors will also focus on the U.S. with the release of Non-Farm Employment Change and the headline Unemployment Rate.\u00a0 However, a negative reading may not have too extreme of an impact since investors expect harsh winter weather may have curtailed hiring.\u00a0 Regardless, U.S. employment data always has the potential to move FX markets, so investors should keep a close eye on tomorrow\u2019s data wire.<\/p>\n

Technically speaking, the Cable has our 1st and 2nd tier uptrend lines serving as technical cushions along with intraday and 3\/3 lows.\u00a0 Additionally, the psychological .150 level could work in the Cable\u2019s favor shout it be retested.\u00a0 As for the topside, the Cable faces multiple downtrend lines.\u00a0 Our top tier downtrend line does run through 2\/26 highs, meaning a breakout could yield substantial near-term gains should fundamental and psychological factors work in the Cable\u2019s favor.<\/p>\n

Present Price: 1.5078<\/p>\n

Resistances: 1.5091, 1.5112, 1.5131, 1.5153, 1.5170, 1.5182<\/p>\n

Supports: 1.5065, 1.5040, 1.5013, 1.4994, 1.4975<\/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 is holding strong above it highly psychological level following solid gains yesterday.\u00a0 UK Services PMI came in much stronger than analyst expectations and registered the highest reading since February 2007.\u00a0 The recovery in services is exactly what the doctor ordered since the UK is a service-oriented economy.\u00a0 The Cable also derived strength from … <\/p>\n

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