{"id":9575,"date":"2010-05-19T12:06:05","date_gmt":"2010-05-19T16:06:05","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9575"},"modified":"2010-05-19T12:06:05","modified_gmt":"2010-05-19T16:06:05","slug":"gbpusd-follows-risk-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/19\/gbpusd-follows-risk-trade\/","title":{"rendered":"GBP\/USD Follows Risk Trade"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable is in sync with the EUR\/USD popping from intraday lows following yesterday\u2019s nasty selloff resulting from Germany\u2019s surprise decision to suspend short selling of government bonds until March 2011.\u00a0 The decision shocked the risk trade, sending the Cable back towards its psychological 1.42 level.\u00a0 The Cable is now dealing with March 2009 levels in what can be seen as a large step back for the currency pair.\u00a0 The BoE meeting minutes showed that they believe price growth we\u2019ve seen is temporary, they are more concerned that issues in the EU could spill over into the UK.\u00a0 This is not the news investors wanted to hear as the parliament tries to move ahead with a coalition government.\u00a0 The Tories are still on track to introduce an emergency budget on June 22nd, though the 6 billion pound deficit reduction is a flash in the pan compared to debt outstanding.\u00a0 Meanwhile, as with the rest of the risk trade the Cable is just trying to form some kind of lasting bottom as the downturn carries on.\u00a0 That being said, investors should continue to monitor conditions in the EU as government officials whether aggressive demands from Merkel & Co.\u00a0 For further disintegration in the EU could drag the Cable lower with the EUR\/USD.\u00a0 The UK will splash the data wire tomorrow with its retail sales release and a positive figure could help buoy the Cable.\u00a0 However, attention will likely remain focused on the EU as they scramble for solutions.<\/p>\n

Technically speaking, the Cable faces mounting downtrend lines along with intraday and 5\/18 highs.\u00a0 Additionally, the psychological 1.45 area could serve as a solid barrier should it be tested.\u00a0 As for the downside, the Cable has support in the form of intraday lows and the psychological 1.42 level.<\/p>\n

Present Price: 1.4352
\nResistances: 1.4366, 1.4398, 1.4416, 1.4431, 1.4451, 1.4474
\nSupports: 1.4340, 1.4305, 1.4274, 1.4248, 1.4236
\nPsychological: 1.42, 1.45, May 2010 and April 2009 lows<\/p>\n

\"\"<\/a><\/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 is in sync with the EUR\/USD popping from intraday lows following yesterday\u2019s nasty selloff resulting from Germany\u2019s surprise decision to suspend short selling of government bonds until March 2011.\u00a0 The decision shocked the risk trade, sending the Cable back towards its psychological 1.42 level.\u00a0 The Cable is now dealing … <\/p>\n

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