Pound vs Dollar - Daily Chart For GBP/USD 3rd July 2009

Pound vs Dollar - Daily Chart For GBP/USD 3rd July 2009

The pounds to dollars pair was another beneficiary of the currency majors for the Dollar strength which came on the back of a sell off in the equity markets following the worse than expected NFP data in the US.  Yesterday’s candle ended the trading session as a wide spread down bar closing below both the 9 and 14 day moving averages but still retaining a degree of clear water above the 40 day.  In many ways yesterday’s candle has validated the extremely bearish “shooting star” seen on Tuesday which introduced a classic bearish indicator to the otherwise sideways consolidation.  For this pattern to be fully confirmed we now need to see a break and hold below the strong support now in place in the 1.59 price region, but given the thin trading volumes it seems unlikely that anything much will happen before next week.  It is interesting to note in trading today that the high of session so far has found the 9 and 14 day bunched moving averages a barrier to any reversal higher with the current rate trading at USD1.6310.

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