GBP/USD - Daily Spot FX Currency Chart 4th May 2009

GBP/USD - Daily Spot FX Currency Chart 4th May 2009

With no fundamental news on the economic calendar relevant to the British Pound owing to the Bank Holiday and only the pending home sales in the US later today trading in the pounds to dollar pair can best be described as desultory.  Having failed to close last week above 1.49 and retreating once again in this morning’s thin trading session cable optimists will have to wait a bit longer before starting  any bull run which, at the moment, seems highly unlikely as we appear to be in for a further period of sustained consolidation.

From a technical perspective last Thursday’s shooting star provided a portent of things to come and despite Friday’s subsequent up-bar (on the back of very thin markets) my view remains unchanged that 1.50 is proving to be an immovable barrier to any move higher to the pound dollar and with a raft a data due for release later this week we will, no doubt, see it fall once again.  Trading this pair will probably be reduced to intra day swing trading between 1.50 and 1.42 and only a break out of this range will indicate that a sustained trend might be established once clear of either price point.  The moving averages (like many other currency pairs) are converging and hence provide us with a less meaningful analysis which makes trading particular difficult at the moment.

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