Forex Market Analysis - Daily Chart GBP/USD 31st August 2009

Forex Market Analysis - Daily Chart GBP/USD 31st August 2009

Forex Technical Analysis

Friday’s candle once again left the daily forex chart for Cable looking weak, ending the forex trading session with a narrow spread down bar, but deep upper shadow as the US dollar bulls forced the British Pound lower in later trading.  The weakness is reinforced by the fact that the high of the day failed to break above any of the three moving averages, which are now adding to the bearish pressure from above. In addition, as the pair have almost breached the deep support level, and seem about to break out below the lower level, this is adding the the general technical weakness on the daily chart. The key for any deeper move is of course the 1.600 price handle and should this be broken in due course, then we may see a re-test of the 1.57 level as a result. The weekly chart also confirms this view with the shooting star candle sitting neatly above the recent price falls, and with last weeks closing price ending below both the 9 week and 14 week moving averages, this again is confirming our forex technical analysis for the pounds to dollars pair.

Fundamental Forex Analysis

Monday is of course a national holiday in the UK, so there is no fundamental news on the economic calendar for today for the British Pound, with the only data in the US being the Chicago PMI, which is expected to confirm that we may now be reaching the end of the recession and bottoming out into the long slow and no doubt painful recovery.

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.