{"id":8663,"date":"2010-04-19T14:14:23","date_gmt":"2010-04-19T18:14:23","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8663"},"modified":"2010-04-19T14:14:23","modified_gmt":"2010-04-19T18:14:23","slug":"gbpusd-sinks-with-broad-based-dollar-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/19\/gbpusd-sinks-with-broad-based-dollar-rally\/","title":{"rendered":"GBP\/USD Sinks with Broad-Based Dollar Rally"},"content":{"rendered":"

By Fast Brokers<\/strong> – Although the Cable is making a strong intraday rally from intra-session lows and its psychological 1.52 level, the currency pair has still been dealt a solid psychological blow by negative psychological developments across the globe.\u00a0 The SEC\u2019s Goldman suit is dominating headlines as investors fear that this may only be the beginning of numerous financial investigations involving fraud attributing to the economic crisis.\u00a0 Additionally, by going after Goldman the SEC is giving politicians ample fuel to push a new financial regulation bill in its more aggressive form, a negative for financials and consequently the risk trade.\u00a0 Investors have reacted as expected by snapping up the Dollar and Yen, and the Cable is no exception despite its relative strength as of late.\u00a0 In addition to the Goldman situation, news that the Chinese government is cracking down on real-estate lending practices has only contributed more to Friday\u2019s risk averse momentum.\u00a0 The SCI dropped by nearly -5% as investors fear that China\u2019s economic growth rate will slow since it is highly dependent on real-estate.\u00a0 Although Goldman has had a larger impact on the risk trade thus far, a slowdown in China could have a more serious impact on the Dollar as a whole over the medium-term.\u00a0 Today\u2019s data wire was quiet, leaving psychological forces at the steering wheel.\u00a0 However, the UK will reenter the fray tomorrow by releasing CPI data.\u00a0 If consumer prices print hotter than anticipated this could benefit the Cable since the BoE would likely refrain from loosening liquidity.\u00a0 On the other hand, weak CPI growth could drag on the Cable for the opposite reason.\u00a0 Meanwhile, investors should keep a close eye on the news wire since psychologicals are in control.\u00a0 Investors will also receive key tech earnings releases this week, meaning we could be in for an active few days.<\/p>\n

Technically speaking, the Cable has managed to avoid a retest of previous April lows this far and has intraday lows along with its psychological 1.52 area serving as technical cushions for the time being.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with intraday, 4\/9, and 4\/12 highs.\u00a0 Additionally, the 1.53 level could serve as a psychological barrier.<\/p>\n

Present Price: 1.5309
\nResistances: 1.5325, 1.5343, 1.5371, 1.5386, 1.5404, 1.5419
\nSupports: 1.5282, 1.5263, 1.5247, 1.5232, 1.5209, 1.5189
\nPsychological: 1.52, 1.53, April highs and 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 – Although the Cable is making a strong intraday rally from intra-session lows and its psychological 1.52 level, the currency pair has still been dealt a solid psychological blow by negative psychological developments across the globe.\u00a0 The SEC\u2019s Goldman suit is dominating headlines as investors fear that this may only be the … <\/p>\n

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