Dollars To Pounds - Daily Chart For GBP/USD 6th May 2009

Dollars To Pounds - Daily Chart For GBP/USD 6th May 2009

Yesterday’s daily candle has provided a worrying signal to cable bulls for dollars to pounds with a classic shooting star sitting atop the recent rally which now strongly suggests that the move upwards has failed once again to hold at this critical level.  I should stress that this point it is too early to say whether this is a short term signal or a longer term sign of weakness, and with so much fundamental news due for release on the economic calendar today, tomorrow and Friday, and coupled with the swirling rumour and speculation surrounding the stress test reports, currency trading at present is far from straightforward.  Under normal market conditions I would have no hesitation in suggesting sell orders into the market based on yesterday’s signal provided it is confirmed with today’s price action which at present seems to be case with possibly a duplicate candle being created today.  If so, this will add weight to the signal and indeed this may be the portent to a further period of consolidation at the 1.50 price mark.   Only time will tell and by the end of the week we should have a much clearer picture on the way forward for the dollars to pounds pair.  With all three moving averages currently pointing higher and with the 9 crossing the 14 there is no reason to suppose that this move has come to end just yet but we now need to wait for all the releases and reports and for this information to be assimilated into the daily price chart for dollars to pounds.

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