{"id":9425,"date":"2010-05-14T15:25:30","date_gmt":"2010-05-14T19:25:30","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9425"},"modified":"2010-05-14T15:25:30","modified_gmt":"2010-05-14T19:25:30","slug":"gbpusd-deteriorates-as-risk-trade-withers","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/14\/gbpusd-deteriorates-as-risk-trade-withers\/","title":{"rendered":"GBP\/USD Deteriorates as Risk Trade Withers"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable has undergone a disconcerting selloff over the past 24 hours as the risk trade drops across the board.\u00a0 Investors seemed to have had a delayed reaction to the negative BoE inflation report with the central bank offering a sluggish outlook on inflation due to expected economic headwinds.\u00a0 Negativity from King and the BoE counters confidence stemming from a coalition in parliament and planned austerity measures.\u00a0 Although the coalition has received a warm welcome so far, their plans for splitting up large banks could be dragging on the Cable.\u00a0 However, there are a lot of psychological forces at work across Europe, so it\u2019s difficult to pinpoint a specific cause for the Cable\u2019s recent downturn.\u00a0 Speaking of Europe, the EUR\/USD has dropped below its highly psychological 1.25 level as economists, central bankers, analysts, and investors question the effectiveness of the $1 trillion rescue package and the validity of the EU has a whole.\u00a0 Hence, speculation is spreading to nations with troublesome fiscal houses, making the Pound an easy target.\u00a0 In addition to these negative forces, investors are also disturbed by more SEC investors in the U.S. as regulatory agencies dig into cases from the economic crisis.\u00a0 On a positive note, most of the consumption data coming from the U.S. today satisfied expectations, continuing the theme of solid global fundamentals.\u00a0 However, solid U.S. data gives investors even more of an incentive to sell the Pound and Euro for the Dollar with the Greenback becoming a desirable safe haven amidst global economic uncertainty.<\/p>\n

Technically speaking, the Cable faces mounting downtrend lines along with intraday and 5\/13 highs along with the psychological 1.46 and 1.47 levels.\u00a0 As for the downside, the Cable has support in the form of an uptrend running through intraday lows along with the psychological 1.45 level.<\/p>\n

Present Price: 1.4574
\nResistances: 1.4590, 1.4616, 1.4630, 1.4654, 1.4679, 1.4701
\nSupports: 1.4574, 1.4563, 1.4531, 1.4507, 1.4495
\nPsychological: 1.47, 1.46, 1.45, 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 has undergone a disconcerting selloff over the past 24 hours as the risk trade drops across the board.\u00a0 Investors seemed to have had a delayed reaction to the negative BoE inflation report with the central bank offering a sluggish outlook on inflation due to expected economic headwinds.\u00a0 Negativity from … <\/p>\n

Continue reading “GBP\/USD Deteriorates as Risk Trade Withers”<\/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-9425","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9425","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=9425"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9425\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}