Pound vs Dollar - Daily Candle Chart GBP/USD 30th July 2009
Yesterday’s price action on the pounds to dollars daily chart provided little in the way of any clues or signals for us as currency traders, as trading was once again restricted to a relatively narrow range. Whilst the down candle created, closed marginally below all three moving averages, this has little significance given the tight bunching that is now in progress, and the pivotal level remains intact at 1.67. It is interesting to note over the last two days that the euro dollar and pound dollar seemed to have disconnected again, with the correlation once again falling out of synch, and this has been repeated in early trading this morning with cable moving higher on the back of some encouraging news on the UK housing front, whilst the euro dollar has struggled to regain some of the losses following two days of sustained selling pressure. All that can be said at present is much the same as before – until we see a sustained break AND hold above the 1.67 price handle then any attempt to move higher can only be considered to be a short term reversal. Likewise, on the short side, until we see a break and hold firmly below the 1.60 price level, then again we cannot assume that any trend lower is more than a temporary reversal. We therefore have to be patient with Cable and look for trading opportunities in other markets and pairs.As mentioned above the main item of fundamental news on the economic calendar for the UK this morning was the release of the Nationwide HPI data, which showed house prices rising for the third month in a row, and beating the forecast of 0.3% with a healthy 1.3% – whether you believe these figures is another matter entirely as anecdotal evidence would suggest otherwise – but there we are – statistics never lie !!!!!! The main item of fundamental news in the US is the weekly unemployment data and I have covered this more fully on the euro dollar site.
You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.
