{"id":7699,"date":"2010-03-18T14:12:20","date_gmt":"2010-03-18T18:12:20","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7699"},"modified":"2010-03-18T14:12:20","modified_gmt":"2010-03-18T18:12:20","slug":"gbpusd-drifts-lower-with-risk-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/18\/gbpusd-drifts-lower-with-risk-trade\/","title":{"rendered":"GBP\/USD Drifts Lower with Risk Trade"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is drifting lower today as the currency pair continues to cool from this week\u2019s impressive topside run.\u00a0 More uncertainty in the EU has had a negative psychological impact on the risk trade as the whole with the Aussie and gold also being dragged lower.\u00a0 However, the Pound is continuing to exert a relative strength, highlighted by further weakness in the EUR\/GBP.\u00a0 Yesterday\u2019s surprisingly strong employment data along with slight inflation concerns from the BoE has given investors a reason to be positive about the Pound again despite a dead heat in the parliamentary elections.\u00a0 That being said, the UK does have the potential for negative psychological events of its own, particularly concerning elections and the upcoming budget announcement.\u00a0 Today\u2019s net borrowing data revealed a slight decline, a positive development for a UK government which has accumulated considerable debt.\u00a0 Meanwhile, CBI Industrial Orders declined, reflected the setback we saw in Manufacturing Production last week.\u00a0 Today\u2019s U.S. data was positive mixed with the Philly Index and Current Account data topping expectations while Unemployment Claims and CPI remained relatively flat.\u00a0 The Dollar has shown a mixed reaction thus far, and it will be interesting to see whether the Cable can continue to consolidate regardless of weakness in the Euro.\u00a0 Meanwhile, the Cable is still trading well above our previous downtrend lines, a positive development for the currency pair\u2019s medium-term outlook.\u00a0 However, the Cable must now deal with what is our 3rd tier downtrend line, which runs through 1\/28 highs, or the 1.625 area.\u00a0 Tomorrow\u2019s data wire is relatively quiet, meaning currency pairs could follow their respective weekly momentums unless there is another psychological development.<\/p>\n

Technically speaking, the Cable has multiple uptrend lines serving as technical cushions along with intraday and 3\/17 lows.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with intraday and 3\/17 highs.\u00a0 Our new 3rd tier downtrend line could prove to be a key barometer since it runs through 1\/28 highs, or the 1.6275 area.<\/p>\n

Present Price: 1.5279<\/p>\n

Resistances: 1.5288, 1.5318, 1.5334, 1.5354, 1.5377, 1.5397<\/p>\n

Supports:15272, 1.5252, 1.5236, 1.5218, 1.5205, 1.5184<\/p>\n

Psychological: 1.53, 1.54, March highs<\/p>\n

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

(click chart 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 regarded neither 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 drifting lower today as the currency pair continues to cool from this week\u2019s impressive topside run.\u00a0 More uncertainty in the EU has had a negative psychological impact on the risk trade as the whole with the Aussie and gold also being dragged lower.\u00a0 However, the Pound is continuing … <\/p>\n

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