{"id":9376,"date":"2010-05-12T12:15:21","date_gmt":"2010-05-12T16:15:21","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9376"},"modified":"2010-05-12T12:15:21","modified_gmt":"2010-05-12T16:15:21","slug":"gbpusd-fluctuates-wildly-with-mixed-news","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/12\/gbpusd-fluctuates-wildly-with-mixed-news\/","title":{"rendered":"GBP\/USD Fluctuates Wildly with Mixed News"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable rallied earlier today, popping back above 1.50 in reaction to news that Clegg will become deputy prime minister, signaling the Tories and Liberals are willing to cooperate with each other.\u00a0 Additionally, Cameron hit the ground running on his first day and revealed that the UK government will release an emergency budget over the next 50 days which should shave roughly $9 billion off of the nation\u2019s budget deficit.\u00a0 In other good news, the CCC printed lower than expected and average earnings skyrocketed, implying both employment and spending power are improving.\u00a0 This data tacks onto this week\u2019s impressive manufacturing production figure.\u00a0 Hence, the fundamental outlook for the UK is improving despite troubles in the EU.\u00a0 While this is all positive news for the Cable, the BoE\u2019s inflation report crashed the party as the central bank stated that it expects inflation to remain under 2% over the next two years due to economic headwinds.\u00a0 Therefore, the BoE\u2019s outlook hasn\u2019t improved as quickly as investors may have hoped, implying that the central bank could be reluctant in tightening liquidity.\u00a0 The UK will keep the data flowing tomorrow by releasing its trade balance.\u00a0 Considering the strong manufacturing data we\u2019ve seen it wouldn\u2019t be surprising if exports improved as the Pound weakens.<\/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: 1.4863
\nResistances: 1.4870, 1.4886, 1.4902, 1.4922, 1.4945, 1.4968
\nSupports: 1.4852, 1.4831, 1.4806, 1.4784, 1.4761, 1.4740, 1.4718
\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 rallied earlier today, popping back above 1.50 in reaction to news that Clegg will become deputy prime minister, signaling the Tories and Liberals are willing to cooperate with each other.\u00a0 Additionally, Cameron hit the ground running on his first day and revealed that the UK government will release an … <\/p>\n

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