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GBP/USD Daily Commentary for 2.24.09

Discussion in 'Forex Daily News & Outlook' started by FastBrokers, Feb 24, 2009.

  1. FastBrokers

    FastBrokers New Member

    Feb 23, 2009
    Likes Received:
    Los Angeles
    The Cable failed to reach our 3rd tier resistance on Monday as crashing U.S. equities dragged the currency pair lower. The GBP/USD is presently dropping below our 2nd tier downtrend line despite better than expected housing and consumer spending data. The downturn of the Cable while ignoring positive data shows the currency pair is expressing concern over the condition of the U.S. economy. Since the British and American economies are so intertwined, particularly in the financial industry, further deterioration in America should ultimately bleed into Britain. Therefore, all eyes will be on U.S. equities to see if the S&P’s 2008 lows can hold. However, considering our negative outlook for the S&P futures, we maintain our negative stance on the GBP/USD. On a positive note, the Cable still has the 12/12-12/20 base to fall back on to the downside. Fundamentally, we find resistances of 1.4505, 1.4569, 1.4660, and 1.4742. To the downside, we see supports of 1.4392, 1.4328, 1.4242, and 1.4142. The psychological 1.40 area is turning into a cushion while 1.45 serves as a strong barrier to the upside once again. The GBP/USD is currently exchanging at 1.4402.

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    #1 FastBrokers, Feb 24, 2009
    Last edited: Feb 24, 2009

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