Pounds To Dollars Weekly Candle Chart - February 2nd 2009

Pounds To Dollars Weekly Candle Chart - February 2nd 2009

Last week saw a wide spread up bar on the pounds to dollars chart, which reversed the losses of the previous week, but provided little in the way of information for us as traders. The closing price on Friday failed to penetrate the 9 week moving average, and therefore based on the weekly analysis, the bearish momentum remains in place.  Sadly the candle fell some way short of being a bullish engulfing candle, as we must ignore that and look at facts, which indicate a continued bearish trend in the medium term, which will only be reversed, if and when any breakout occurs through the resistance level at 1.4700 and above. For any move to be sustained we would need to see the 1.5000 base become support to any move upwards.