{"id":7928,"date":"2010-03-24T12:59:35","date_gmt":"2010-03-24T16:59:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7928"},"modified":"2010-03-24T12:59:35","modified_gmt":"2010-03-24T16:59:35","slug":"gbpusd-knocked-lower-amid-risk-aversion","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/24\/gbpusd-knocked-lower-amid-risk-aversion\/","title":{"rendered":"GBP\/USD Knocked Lower Amid Risk-Aversion"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable has been tossed below 3\/22 lows amid risk aversion stemming from continued uncertainty in the EU.\u00a0 Investors initially sent the Euro lower with IMF involvement in Greece\u2019s rescue becoming more likely.\u00a0 The rest of the risk trade followed suit after Fitch downgraded Portugal, igniting speculation that fiscal woes are just the tip of the iceberg with the possibility of contagion on the horizon.\u00a0 The concept of more PIIGS nations being hit by credit woes instinctively sent investors to the Dollar for safety, knocking the Cable despite a lack of economic data from the UK.\u00a0 However, the Cable is fighting to stabilize a bit as Darling delivers the UK\u2019s 2010 budget.\u00a0 Should the projected 2010 budget deficit come in lower than anticipated, this could help buoy the Cable a bit despite thunderstorms in the EU.\u00a0 The Cable does still have previous March lows in place, meaning the currency pair appears to have stronger near-term support than the EUR\/USD, which just experienced a hefty technical setback.\u00a0 Meanwhile, the U.S. has New Home Sales data on the way, and a better than expected result could strengthen the Dollar further, while a weak number could help stabilize the Cable.\u00a0 The U.S. also released DGO data this morning which printed mixed, indicating U.S. consumption is recovering slowly.\u00a0 For the time being, it will be interesting to see how investors react to the UK\u2019s 2010 budget plans as investors dissect Darlin\u2019s address throughout the trading session.\u00a0 The UK will release Retail Sales data tomorrow along with a few EU and U.S. figures.\u00a0 However, attention will likely be honed in on the EU\u2019s meeting and any possible solutions for how to handle Greece.<\/p>\n

Technically speaking, although near-term supports are certainly wearing thin, the Cable still has 3\/10 and 3\/2 lows working in its favor.\u00a0 As for the topside, the Cable clearly faces multiple downtrend lines along with the psychological 1.50 level should it be tested.<\/p>\n

Present Price: 1.4924
\nResistances: 1.4928, 1.4936, 1.4946, 1.4954, 1.4967
\nSupports: 1.4914, 1.4901, 1.4893, 1.4878, 1.4871
\nPsychological: 1.50, March lows<\/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 has been tossed below 3\/22 lows amid risk aversion stemming from continued uncertainty in the EU.\u00a0 Investors initially sent the Euro lower with IMF involvement in Greece\u2019s rescue becoming more likely.\u00a0 The rest of the risk trade followed suit after Fitch downgraded Portugal, igniting speculation that fiscal woes are … <\/p>\n

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