{"id":8697,"date":"2010-04-20T12:31:51","date_gmt":"2010-04-20T16:31:51","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8697"},"modified":"2010-04-20T12:31:51","modified_gmt":"2010-04-20T16:31:51","slug":"gbpusd-posts-solid-bounce","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/20\/gbpusd-posts-solid-bounce\/","title":{"rendered":"GBP\/USD Posts Solid Bounce"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable has posted a solid bounce today from yesterday\u2019s lows after UK CPI and RPI came in hotter than anticipated.\u00a0 The persistent price growth taking place in the UK seems to be more than a temporary blip as the BoE implied a couple months ago.\u00a0 Hence, the Pound is outperforming the Euro since the BoE has less incentive to loosen than the ECB.\u00a0 In fact, if CPI remains this far above 3% after the election then the BoE may have to be more proactive, depending on the political environment.\u00a0 Regardless, King will have to write the government another letter explaining the central bank\u2019s outlook on price movements.\u00a0 That being said, the Cable could hold up strong over the near-term since CPI above 3% implies that the BoE will not consider loosening at its next meeting.\u00a0 Meanwhile, the Cable is declining from intraday highs as the Dollar appreciates across the board in reaction to impressive earnings from Goldman.\u00a0 Hence, investors should keep an eye on the U.S. news wire since it seems bellweather earnings could have an influence over the Dollar for the time being.\u00a0 The UK will keep its data and\u00a0 news wires busy tomorrow with the release of the Claimant Count Change along with the BoE\u2019s Meeting Minutes.\u00a0 The CCC registered a much larger than expected decline last month, so it will be intriguing to see how tomorrow\u2019s release turns out.\u00a0 Should the CCC decline again this could benefit the Pound and push the Cable higher in anticipation that the UK\u2019s unemployment rate will improve.<\/p>\n

Technically speaking, the Cable has managed to avoid a retest of previous April lows thus far and has intraday lows along with its psychological 1.52 and 1.53 levels serving as technical cushions for the time being.\u00a0 As for the topside, the Cable faces multiple downtrend lines along with intraday, 4\/12, and 4\/15 highs.\u00a0 Additionally, the 1.54 and 1.55 levels could serve as a psychological barriers over the near-term.<\/p>\n

Present Price: 1.5350
\nResistances: 1.5371, 1.5386, 1.5404, 1.5419, 1.5435, 1.5453
\nSupports: 1.5341, 1.5325, 1.5292, 1.5278, 1.5263
\nPsychological: 1.55, 1.54, 1.53, 1.52, 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 – The Cable has posted a solid bounce today from yesterday\u2019s lows after UK CPI and RPI came in hotter than anticipated.\u00a0 The persistent price growth taking place in the UK seems to be more than a temporary blip as the BoE implied a couple months ago.\u00a0 Hence, the Pound is outperforming … <\/p>\n

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