{"id":9775,"date":"2010-05-27T11:08:31","date_gmt":"2010-05-27T15:08:31","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9775"},"modified":"2010-05-27T11:08:31","modified_gmt":"2010-05-27T15:08:31","slug":"gbpusd-battles-1-45","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/27\/gbpusd-battles-1-45\/","title":{"rendered":"GBP\/USD Battles 1.45"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is holding strong above May lows and is battling its psychological 1.45 level as the Pound outperforms the Euro, highlighted by a steep decline in the EUR\/GBP.\u00a0 The Pound\u2019s relative strength could be stemming from comments issued by the OECD encouraging the BoE to raise rates by the end of the year if it wants to keep inflation under control.\u00a0 We\u2019ve previously noted the incessant rise in UK inflation over the past months.\u00a0 The BoE has brushed the readings aside as a temporary trend, though the OEC doesn\u2019t seem to buy it.\u00a0 Hence, speculation that the BoE could be under pressure to raise rates sooner than anticipated has helped the Cable perform well over the past 24 hours.\u00a0 However, the OECD\u2019s comments directly contradict the BoE\u2019s expectation of deflation in its recent inflation report.\u00a0 Therefore, we\u2019ll have to see whether the BoE changes its stance.\u00a0 If not, the Pound\u2019s relative strength could fade over time.\u00a0 BBA mortgage approvals printed below analyst expectations yesterday and investors are currently waiting on CBI realized sales.\u00a0 Solid consumption data could help boost the Cable, although the currency pair may opt to follow general movements in the risk trade.\u00a0 More emphasis will likely be placed on upcoming U.S prelim GDP data.\u00a0 UK nationwide HPI is due for a tentative release, though fiscal issues in the EU and U.S. data should take main stage for the rest of the week.<\/p>\n

Technically speaking, the Cable faces multiple downtrend lines along with intraday and 5\/14 highs.\u00a0 Additionally, the psychological 1.45 area could continue to 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: 1.4477
\nResistances: 1.4498, 1.4521, 1.4543, 1.4584, 1.4626, 1.4671
\nSupports: 1.4432, 1.4409, 1.4387, 1.4359, 1.4326, 1.4301
\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 holding strong above May lows and is battling its psychological 1.45 level as the Pound outperforms the Euro, highlighted by a steep decline in the EUR\/GBP.\u00a0 The Pound\u2019s relative strength could be stemming from comments issued by the OECD encouraging the BoE to raise rates by the end … <\/p>\n

Continue reading “GBP\/USD Battles 1.45”<\/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-9775","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9775","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=9775"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9775\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}