Dollars To Pounds - GBP/USD Daily Chart 10th July 2009

Dollars To Pounds - GBP/USD Daily Chart 10th July 2009

Yesterday’s wide spread up bar in the pounds to dollars pair broke back above the 40 day moving average but failed to penetrate either the 9 or 14 day moving averages which acted as a barrier to any further progress higher.  In addition the high of the day seemed to find strong resistance from the recent consolidation area which came as no great surprise, since any move to reclaim lost ground will have to breach the 1.66 price handle above this significant arc of congestion.  The shooting star candle of last week still seems to be holding sway and despite yesterday’s rally the tone on the daily GBP/USD chart remains mildly bearish.  For this picture to be confirmed we need to see a break and hold below the 1.59 price level coupled with pressure from all three moving averages.  For any move higher we need to see a weekly close above the 1.66 price point which to date has proved elusive for the dollars to pounds pair.

Items of fundamental news on the economic calendar for the US are covered on the main Eurodollar site while for the UK the main items of news were those for PPI which included both input and output prices.  The former came in better than expected at 1.5% against a forecast of 0.8% whilst the latter came in worse than expected at -0.2% against a forecast of 0.3%, indicating an increased risk of deflation in the UK.

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.