Dollars To Pounds - Currency Trading Daily Chart 22nd May 2009

Not even the Standard and Poor comments about the UK’s Triple AAA credit status nor the IMF’s concerns about the UK economy (in particular its debt level), were able to dent the progress of the dollars to pounds pair, which continues to surge higher rocketing towards our initial target of 1.6 and now with 1.65 firmly on the horizon in the medium term.   Yesterday’s news helped to create a candle with a deep lower wick indicative of a move higher and adding further to the strong bullish tone for the British Pound, which when coupled with the equal and opposite weakness of the US Dollar, is providing an unstoppable combination which seems set to continue for some time.  Indeed in this morning’s early trading despite some less than stellar GDP figures for the UK Cable bulls once again overcame the bears mitigating an early reversal and taking the British Pound higher once again.  For those you following my current trading suggestions for this pair, I would recommend tightening your stop losses to lock in profits ahead of the three day weekend and if you are looking to add to your positions to buy on any dips or short term reversals on an intra day basis of which today might be a good example.  A small caveat is that with a number of markets closed for a national holiday today will see thin trading volumes which can lead to unexpected volatility and price action.

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