{"id":8269,"date":"2010-04-06T13:56:52","date_gmt":"2010-04-06T17:56:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8269"},"modified":"2010-04-06T13:56:52","modified_gmt":"2010-04-06T17:56:52","slug":"gbpusd-takes-a-hit-as-risk-aversion-returns","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/06\/gbpusd-takes-a-hit-as-risk-aversion-returns\/","title":{"rendered":"GBP\/USD Takes a Hit as Risk Aversion Returns"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable has undergone a hefty pullback today as a combination of overbought conditions and negative psychological developments hit the currency pair.\u00a0 First off, the Cable has been on a tear lately, so today\u2019s weakness is not too shocking.\u00a0 However, the Cable did react badly to a new poll showing the Conservatives losing some of their advantage over Labor.\u00a0 Today\u2019s poll contradicts the optimism built off of Sunday\u2019s poll showing the Conservatives gaining ground.\u00a0 Altogether, the message being sent is that the election is too close to call and the probability of a hung parliament is increasing.\u00a0 Gordon Brown set an election date for May 6th, bringing parliament into full focus.\u00a0 The concept of a hung parliament has damaged the Cable recently due to concern that the UK government will not be able to pass austerity measures necessary to tackle deteriorating fiscal conditions.\u00a0 Meanwhile, it will be interesting to see if the Cable can stabilize from today\u2019s hit and regain the momentum of its uptrend established from March lows.\u00a0 In addition to chatter about upcoming UK elections, uncertainty has returned in Greece.\u00a0 Greek officials are expressing their discontent for IMF involvement in any financial aid packages due to stringent fiscal measures being proposed by the monetary fund.\u00a0 Greek bonds yields are rising on the news and the Euro is taking another downturn.\u00a0 Hence, investors should keep an eye out for any new developments in the EU since they can impact the risk trade as a whole.\u00a0 Attention now turns to the U.S. with FOMC meetings due this afternoon.\u00a0 The UK will return to the data wire tomorrow by releasing Services PMI and Halifax HPI data points.\u00a0 Since the UK\u2019s GDP is reliant on the services industry, tomorrow\u2019s PMI number could have a noticeable impact on the Cable.<\/p>\n

Technically speaking, the Cable is still trading comfortable above downtrends running through March 17 highs, or the 1.5380 area.\u00a0 Hence, the Cable\u2019s uptrend is still alive and well despite today\u2019s pullback.\u00a0 Additionally, the Cable has fresh uptrend lines serving as technical cushions along with intraday and 3\/31 lows.\u00a0 On the other hand, the Cable has dropped below April 2nd lows, and it will be interesting to see if the currency pair can stage an intraday recovery.<\/p>\n

Present Price: 1.5150
\nResistances: 1.5159, 1.5167, 1.5177, 1.5194, 1.5205, 1.5215
\nSupports: 1.5139, 1.5125, 1.5106, 1.5095, 1.5085, 1.5071
\nPsychological: 1.53, 1.52, March highs and April 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 undergone a hefty pullback today as a combination of overbought conditions and negative psychological developments hit the currency pair.\u00a0 First off, the Cable has been on a tear lately, so today\u2019s weakness is not too shocking.\u00a0 However, the Cable did react badly to a new poll showing the … <\/p>\n

Continue reading “GBP\/USD Takes a Hit as Risk Aversion Returns”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8269","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=8269"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8269\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}