{"id":8878,"date":"2010-04-28T14:22:37","date_gmt":"2010-04-28T18:22:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8878"},"modified":"2010-04-28T14:22:37","modified_gmt":"2010-04-28T18:22:37","slug":"gbpusd-logs-substantial-losses-with-fiscal-and-election-worries","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/28\/gbpusd-logs-substantial-losses-with-fiscal-and-election-worries\/","title":{"rendered":"GBP\/USD Logs Substantial Losses with Fiscal and Election Worries"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has taken a turn for the worse, hitting its psychological 1.52and dropping below 4\/19 lows as EU uncertainty spread s to the UK.\u00a0 The fear of contagion in the EU pushed up bond yields across the union.\u00a0 Naturally investors have become concerned about the UK in the process due to the nation\u2019s uncomfortable debt level.\u00a0 Additionally, election polls are all over the place with a hung parliament looking likely as May 6th approaches.\u00a0 The concept of fiscal contagion combined with the possibility of a hung parliament has worried investors that the new UK government will not be able to institute necessary austerity measures.\u00a0 The Cable has been whacked as a result and the currency pair will need to post a reassuring bounce soon to regain its poise.\u00a0 Both\u00a0 BBA mortgage approvals and CBI realized sales data points were negative yesterday, providing little relief for this troubled currency pair.\u00a0 Although the UK was quiet on the data wire today, all eyes will be focused on the Fed\u2019s monetary policy decision.\u00a0 The Fed\u2019s decision has the potential to really move the FX markets, particularly if the central bank changes its language concerning the time frame for its loose monetary policy.\u00a0 However, if the Fed keeps its policy as is the impact may be negligible.\u00a0 Regardless, investors should keep a close watch on how the greenback reacts to the Fed\u2019s statement.\u00a0 The UK will also release Nationwide HPI tomorrow and there\u2019s always the potential for a new development in the EU, meaning the next 24-48 hours could prove to be active.<\/p>\n

Technically speaking, the Cable still has some uptrend lines serving as defense along with 4\/6 and 3\/31 lows.\u00a0 Additionally, the psychological 1.51 and 1.50 level could serve as solid technical cushions should they be tested.\u00a0 As for the topside, downtrend lines are now accumulating and the Cable also faces technical barriers in the form of 4\/5, 3\/17, and 4\/26 highs.\u00a0 Furthermore, the psychological 1.53 level could serve as a solid barrier should it be reached.<\/p>\n

Present Price: 1.5196
\nResistances: 1.5209, 1.5223, 1.5237, 1.5249, 1.5265, 1.5279
\nSupports: 1.5190, 1.5180, 1.5164, 1.5141, 1.5122, 1.5101
\nPsychological: 1.53, 1.52, 1.51, 1.50,\u00a0 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 taken a turn for the worse, hitting its psychological 1.52and dropping below 4\/19 lows as EU uncertainty spread s to the UK.\u00a0 The fear of contagion in the EU pushed up bond yields across the union.\u00a0 Naturally investors have become concerned about the UK in the process due … <\/p>\n

Continue reading “GBP\/USD Logs Substantial Losses with Fiscal and Election Worries”<\/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-8878","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8878","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=8878"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8878\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}