{"id":9697,"date":"2010-05-25T13:31:25","date_gmt":"2010-05-25T17:31:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9697"},"modified":"2010-05-25T13:31:25","modified_gmt":"2010-05-25T17:31:25","slug":"gbpusd-tries-to-hold-may-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/25\/gbpusd-tries-to-hold-may-lows\/","title":{"rendered":"GBP\/USD Tries to Hold May Lows"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Cable is trying to hold previous May lows after the currency pair followed the risk trade lower after news broke that regional banks in Spain have debt issues.\u00a0 The government has taken control of a regional bank and the IMF issued a warning implying that conditions could deteriorate should Spain\u2019s financial industry not undergo reform.\u00a0 Should conditions worsen in Spain and bond yields climb, then this could easily become a bigger problem than Greece considering the size of Spain\u2019s economy.\u00a0\u00a0\u00a0 Fears surrounding Spain knocked the entire risk trade and the Cable was no exception.\u00a0 However, the Pound is outperforming, highlighted by a sharp downturn in the EUR\/GBP.\u00a0 It seems the Cable is deriving a bit of its relative strength from Parliament\u2019s intention to implement its 6 Billion Pound worth of budget cuts.\u00a0 Even though 6 billion is a flash in the pan, the concept that Parliament is serious about tackling its debt has given some confidence to the Pound.\u00a0 Regardless, the Cable should follow the risk trade and previous May lows could give way if today\u2019s broad-based downturn accelerates.\u00a0 On a positive note, UK revised GDP printed in line with analyst estimates and no news is good news in this case.\u00a0 Investors are presently waiting on U.S. CB consumer confidence, though attention will likely remain focused on the EU and developments in Korea.<\/p>\n

Technically speaking, the Cable faces multiple downtrend lines along with 5\/24 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 and 5\/20 lows.\u00a0 Furthermore, the psychological 1.42 level could serve as a technical cushion if it\u2019s reached.<\/p>\n

Present Price: 1.4329
\nResistances: 1.4362, 1.4387, 1.4409, 1.4443, 1.4468, 1.4498
\nSupports: 1.4326, 1.4301, 1.4265, 1.4232, 1.4173, 1.4126, 1.4100
\nPsychological: 1.42, 1.45, May 2010 and February 2009 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 is trying to hold previous May lows after the currency pair followed the risk trade lower after news broke that regional banks in Spain have debt issues.\u00a0 The government has taken control of a regional bank and the IMF issued a warning implying that conditions could deteriorate should Spain\u2019s … <\/p>\n

Continue reading “GBP\/USD Tries to Hold May Lows”<\/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-9697","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9697","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=9697"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9697\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}