{"id":9308,"date":"2010-05-11T12:50:34","date_gmt":"2010-05-11T16:50:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9308"},"modified":"2010-05-11T12:50:34","modified_gmt":"2010-05-11T16:50:34","slug":"gbpusd-sinks-as-lib-dems-negotiate","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/11\/gbpusd-sinks-as-lib-dems-negotiate\/","title":{"rendered":"GBP\/USD Sinks as Lib Dems Negotiate"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable wasn\u2019t able to hold 1.50 and is trading back around 1.48 as negotiations in parliament heat up.\u00a0 Both Labour and the Tories are vying for an alliance with the Lib Dems, and Brown even offered to step down as PM should Clegg opt to side with his party.\u00a0 Should this happen, the ability of parliament to pass meaningful legislation to curb the nation\u2019s fiscal deficit could be hampered.\u00a0 Either way, the uncertainty is weighing on the Cable as the risk trade has little to be optimistic about in general.\u00a0 China\u2019s SCI officially entered a bear market this week amid fears that the government will need to be more aggressive in slowing down its overheating economy.\u00a0 Additionally, analysts and investors are questioning the effectiveness of the EU\u2019s $1 trillion rescue package, punishing the risk trade in the process.\u00a0 On a positive note, UK manufacturing production surged as a weak Pound boost demand for manufactured goods.\u00a0 The positive reading is giving the Pound a bit of relative strength despite the weakness in the risk trade, highlighted by a sliding EUR\/GBP.\u00a0 Investors will continue to keep their eyes on the news wires regarding any updates concerning the intense negotiations in parliament.\u00a0 Additionally, the UK will release CCC data, followed by a public address from King and the BoE inflation report.\u00a0 It will be interesting to see if UK employment continues to improve.\u00a0 If so, this could feed the Pound\u2019s present relative strength.\u00a0 Furthermore, investors will be looking to see if inflation is continuing its uptrend, also a positive for the Cable since the BoE would be less inclined to loosen.<\/p>\n

Technically speaking, the Cable obviously faces multiple downtrend lines considering the extent of last week\u2019s pullback.\u00a0 The Cable also faces near-term technical barriers in the form of 1.50, intraday highs and 5\/10 highs.\u00a0 As for the downside, the Cable has a couple uptrend lines in place along with the psychological 1.48 and 1.47 levels.<\/p>\n

Present Price: 1.4816
\nResistances: 1.4852, 1.4870, 1.4886, 1.4902, 1.4922, 1.4945, 1.4968
\nSupports: 1.4806, 1.4784, 1.4761, 1.4740, 1.4718, 1.4704
\nPsychological: 1.50, 1.49, 1.48, 1.47, May 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 wasn\u2019t able to hold 1.50 and is trading back around 1.48 as negotiations in parliament heat up.\u00a0 Both Labour and the Tories are vying for an alliance with the Lib Dems, and Brown even offered to step down as PM should Clegg opt to side with his party.\u00a0 Should … <\/p>\n

Continue reading “GBP\/USD Sinks as Lib Dems Negotiate”<\/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-9308","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9308","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=9308"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9308\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}