Pound vs Dollar - Daily FX Chart 15th June 2009

Pound vs Dollar - Daily FX Chart 15th June 2009

Hmmm – an interesting pause point on the pounds to dollars chart with Friday’s down candle creating the possibility of a double top and closing the day marginally above the 9 day moving average and with a deep lower wick to the body of the candle.  In contrast to this view, however, it is important to note several of the technical aspects currently in place on the chart.  Firstly, the 9 day moving average appears to be providing strong support to the lows of the last few days and indeed this has been a recurring theme throughout the rally.  Secondly, all three moving averages are still pointing to a move higher and finally Friday’s candle found strong support late in the trading session with the bulls once again crushing the bearish rebellion.  It is interesting to note in this morning’s trading session that this price action has been repeated once again suggesting that the pound vs dollar pair is not yet ready to fall and is possibly taking a breather before pushing higher, and should we see a sustained hold above the 1.66 price region then this view would be confirmed and the potential top could be ignored.

With no items of fundamental news on the economic calendar for the UK other than various comments in the press that this current downturn may end sooner rather than later and that interest rates may have to rise sometime in 2009, details of the fundamental news for the US are covered on the eurodollar site.

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.