Pounds To Dollars - GBP/USD Daily FX Chart 24th June 2009

Pounds To Dollars - GBP/USD Daily FX Chart 24th June 2009

The pounds to dollars pair continues to consolidate sideways in the 1.625 to 1.666 region, moving towards an ever smaller trading range as we approach the point of the pennant pattern which is now emerging on the daily chart.  Yesterday’s candle provided further evidence that when the breakout occurs this may well be to the upside with the open of the day neatly balanced on the 14 day moving average and the close finishing marginally above the 9 day.   Overall the candle in price action of this pair was characterized with a deep lower wick suggesting once again that Cable bulls remain firmly in control for the time being.   The impetus needed for the much need breakout may be provided later today by the FOMC statement and interest rate decision, which if the majority market view prevails will signal the start of a further bout of generalised US Dollar weakness with a resulting benefit to the British Pound, amongst others.

Items of fundamental news on the economic calendar for the US are covered in more detail on the Eurodollar site while for the UK we have had the CBI Realised Sales (diffusion index based on a survey of wholesalers and retailers) which came in at forecast and identical to last month, suggesting that retail sales are flat.  The only item of significance for the UK is an inflation report hearing which includes BOE Governor and several MPC members testifying before Parliament’s Treasury Committee this afternoon and this will also include a speech from BOE Governor Mervyn King which will no doubt be at odds with the Government’s view of the economy.

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.