Pounds To Dollars Weekly Chart - February 9th 2009

Pounds To Dollars Weekly Chart - February 9th 2009

Last weeks candle saw an up bar to add to that of the previous week, which reached but failed to penetrate the key resistance level at 1.4800, although both the 9 week and 14 week averages were crossed. This is a very tough decision at the moment, and much will depend on the early part of the week, but with an eye on the G7 meeting which starts on Friday and runs over the weekend. The question is, do we wait for a clear signal and a strong move up through the resistance immediately above, or wait? My instinct is to wait, although I have a shrewd idea that the pair will move higher in the next few days. If you are a more conservative trader, then I would suggest a wait and see approach for a confirming signal, but if you are happy to take a chance, then I would suggest small long positions are the correct approach, but remember to close out any trades before close of business on Friday.

The fundamental news for the US dollar this week is outlined in the weekly post for euros to pounds, and for the US dollar is detailed on the euro to dollar site.