{"id":9882,"date":"2010-06-01T10:29:17","date_gmt":"2010-06-01T14:29:17","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9882"},"modified":"2010-06-01T10:29:17","modified_gmt":"2010-06-01T14:29:17","slug":"gbpusd-struggles-as-euro-crumbles","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/01\/gbpusd-struggles-as-euro-crumbles\/","title":{"rendered":"GBP\/USD Struggles as Euro Crumbles"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Cable is struggling to break free of its near-term topside barriers as the EUR\/USD tumbles towards its May lows with negative psychological forces hitting the FX markets from the EU to China.\u00a0 The FTSE is down over -2% along with DAX and CAC after China\u2019s manufacturing PMI release came in below analyst expectations, igniting speculation of a slowdown in China amid tighter real estate policies.\u00a0 Li Daokui, a member of China\u2019s central bank policy committee, suggested that China\u2019s property bubble could be worse than America\u2019s due to the possibility of social unrest.\u00a0 For further analysis on this topic, you can read my blog post last week \u2018Year of the Tiger\u2019 at www.blogs.fastbrokers.com\/matthew.\u00a0 Additionally, the ECB warned that there could be another $240 billion worth of writedowns at major EU banks in the pipeline.\u00a0 Speaking of pipelines, BP is down over -12% today after the U.S. government estimated that the oil leak could go unplugged until August.\u00a0 Public discontent is rising over the adverse affects from the spill and investors likely expect BP will have to foot a large portion of the bill.\u00a0 Hence, after a calm week it seems negative psychological headwinds are picking up again.\u00a0 The Cable is holding up relatively well considering the extent of the pullback in the Euro, and till be interesting to see if the GBP\/USD can hold May lows.\u00a0 UK Manufacturing PMI came in about in line with analyst expectations and investors are still waiting on Halifax HPI.\u00a0 Attention will now shift to the U.S. with its own manufacturing PMI number ready to hit the wire.<\/p>\n

Technically speaking, the Cable faces multiple downtrend lines along with intraday and 5\/28 highs.\u00a0 Additionally, the psychological 1.45 area could continue to serve as a solid barrier over the near-term.\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: 1.4467
\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 struggling to break free of its near-term topside barriers as the EUR\/USD tumbles towards its May lows with negative psychological forces hitting the FX markets from the EU to China.\u00a0 The FTSE is down over -2% along with DAX and CAC after China\u2019s manufacturing PMI release came in … <\/p>\n

Continue reading “GBP\/USD Struggles as Euro Crumbles”<\/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-9882","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9882","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=9882"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9882\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}