Currency Chart GBP/USD - Daily Candlesticks 17th April 2009

Currency Chart GBP/USD - Daily Candlesticks 17th April 2009

Yesterday’s market commentary was indeed apposite, as the price action once again failed to hold above the psychological 1.5000 level falling back on the day and finishing with a long shadow both the top and the bottom of the body, indicating both indecision and weakness.  This level may prove to be obstinate to any break higher and my advice for those of you who are bullish remains the same as of yesterday, which is to wait for any move above this level before attempting any new long positions.  Indeed this view has been reinforced in this morning London trading session with a wide spread down bar which is piercing the 9 day moving average and looks as though it may breach the 14 day as well. Should this occur then we may see a move deeper, possibly back to retest the minor support level at 1.4648 and if this is penetrated then we could see a move back to 1.4200.  The weekly chart looks exhausted and is certainly not indicative a strongly trending market, and indeed the trend here could best be described as sideways with a complete lack of impetus or direction.  My trading suggestion therefore remains the same, which is to step aside and wait for some clearer signals, either in the daily or in the weekly charts, and for the bullish traders among you to wait for a break above the levels outlined above.

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