{"id":9474,"date":"2010-05-17T12:41:45","date_gmt":"2010-05-17T16:41:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9474"},"modified":"2010-05-17T12:41:45","modified_gmt":"2010-05-17T16:41:45","slug":"gbpusd-rallies-from-intraday-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/17\/gbpusd-rallies-from-intraday-lows\/","title":{"rendered":"GBP\/USD Rallies from Intraday Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable initially registered large losses today after Chancellor Osborne declared that there are many financial \u2018skeletons in the cupboards\u2019 left over by the previous administration.\u00a0 In other words, Osborne is implying that the government may need to make steeper budget cuts than anticipated.\u00a0 Parliament also announced that the emergency budget will be revealed on June 22nd and cut roughly 6 billion Pounds from the UK\u2019s deficit.\u00a0 Regardless, the Cable has heeded Osborne\u2019s \u2018skeletons\u2019 warning since investors will likely have to wait for over a month to discover what this actually means.\u00a0 Additionally, the Cable is benefitting from a relief rally in the risk trade as it seems a calm weekend has finally allowed investor anxieties to cool a bit following last week\u2019s meltdown in the FX markets.\u00a0 However, investors shouldn\u2019t get too apprehensive since glaring bet concerns remain and could reignite at a moment\u2019s.\u00a0 Therefore, investors should keep a keen eye on the news wire this week for any stories or developments that could be a cause for concern for the risk trade.\u00a0 Meanwhile, the LIBOR rate is edging higher along with interest rates on EU short-term paper.\u00a0 Hence, markets are still in a fragile position.\u00a0 The UK will print CPI tomorrow and it will be interesting to see whether the figure remains above the key 3% mark.\u00a0 The BoE has cast aside excessive price growth over the past few months, meaning a 4th straight reading at 3%+ could put a little more pressure on the BoE to further address inflation concerns.\u00a0 However, considering the bleak tone of the BoE\u2019s inflation report last week a pullback in CPI wouldn\u2019t be surprising.\u00a0 Meanwhile, the key for the Cable is stabilization and the currency pair will look to climb back above its psychological 1.45 mark.\u00a0 On the other hand, if current supports don\u2019t hold the Cable could be headed to 1.40<\/p>\n

Technically speaking, the Cable faces mounting downtrend lines along with 5\/14 highs and the psychological 1.45 level.\u00a0 As for the downside, the Cable has support in the form of intraday and 3\/30 lows.\u00a0 Additionally, the psychological 1.40 level could serve as a solid support should it be tested.<\/p>\n

Present Price: 1.4475
\nResistances: 1.4493, 1.4507, 1.4531, 1.4563, 1.4588
\nSupports: 1.4439, 1.4416, 1.4398, 1.4366, 1.4340, 1.4305
\nPsychological: 1.44, 1.43, 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 initially registered large losses today after Chancellor Osborne declared that there are many financial \u2018skeletons in the cupboards\u2019 left over by the previous administration.\u00a0 In other words, Osborne is implying that the government may need to make steeper budget cuts than anticipated.\u00a0 Parliament also announced that the emergency budget … <\/p>\n

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