{"id":7613,"date":"2010-03-16T10:20:49","date_gmt":"2010-03-16T14:20:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7613"},"modified":"2010-03-16T10:20:49","modified_gmt":"2010-03-16T14:20:49","slug":"gbpusd-consolidates-after-hefty-selloff","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/16\/gbpusd-consolidates-after-hefty-selloff\/","title":{"rendered":"GBP\/USD Consolidates After Hefty Selloff"},"content":{"rendered":"

By Fast Brokers<\/strong><\/a> – The Cable is consolidating above Monday\u2019s lows after undergoing a hefty selloff in response to more warning shots concerning UK debt levels.\u00a0 Moody\u2019s issued fresh statements warning the UK, U.S. and several EU countries to get their fiscal houses in order.\u00a0 The prospect of a hung parliament in the UK is worrying investors that the government will not be able to make the necessary budget cuts to counter rising debt levels.\u00a0 The EU issued a similar warning to the UK today citing concerns that proposed austerity measures are not enough to alleviate fiscal fears.\u00a0 Another storm of negative statements dealt a blow to the Pound, highlighted by resilience in the EUR\/GBP.\u00a0 Hence, it\u2019s the same old story for the Pound with psychological attacks weighing down the GBP\/USD.\u00a0 The UK will be quiet again on the data wire, leaving investors focused on today\u2019s FOMC meeting.\u00a0 Should the Fed maintain its dovish monetary language, this could help buoy the Cable and the risk trade in general.\u00a0 However, if the Fed tightens its stance this could place downward pressure on the Cable with investors heading to the Dollar.\u00a0 Therefore, investors should keep an eye on the market\u2019s reaction to today\u2019s Fed statement.\u00a0 On a positive note, gold is rebounding from $1100\/oz.\u00a0 Gold is normally negatively correlated with the Dollar on a trend basis, so gold\u2019s bounce could imply further stability in the risk trade.\u00a0 Meanwhile, it will be interesting to see if the Cable can pop back above our 1st tier downtrend line since it runs through 2\/23 eyes and has been a bearing concerning the longevity of the Cable\u2019s present upswing from 2010 lows.<\/p>\n

Technically speaking, the Cable has multiple uptrend lines serving as technical cushions along with 3\/15 and 3\/11 lows.\u00a0 The psychological 1.50 area comes into play again and could serve as\u00a0 a solid cushion.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with 3\/3, 3\/8 and 3\/12 highs.<\/p>\n

Present Price: 1.5056<\/p>\n

Resistances: 1.5065, 1.5071, 1.5085, 1.5098, 1.5106, 1.5118<\/p>\n

Supports: 1.5037, 1.5029, 1.5020, 1.5012, 1.5004, 1.4998<\/p>\n

Psychological: 1.50 and March highs and lows<\/p>\n

\"\"<\/a><\/p>\n

(click chart to enlarge)<\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/span><\/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 consolidating above Monday\u2019s lows after undergoing a hefty selloff in response to more warning shots concerning UK debt levels.\u00a0 Moody\u2019s issued fresh statements warning the UK, U.S. and several EU countries to get their fiscal houses in order.\u00a0 The prospect of a hung parliament in the UK is … <\/p>\n

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