Pound vs Dollar - Daily FX Chart GBP/USD 9th June 2009

Pound vs Dollar - Daily FX Chart GBP/USD 9th June 2009

Following three down days on the daily chart for the pounds to dollars pair, yesterday’s candle provided some welcome relief for the UK pound, closing the day with a narrow spread up bar, but with a deep lower wick and marginally above the 14 day moving average once again. Technically this candle now suggests that the selling pressure of the last few days has been absorbed by the market and the bulls are now back in charge, and that we should therefore see prices recover in due course, and re-establish the bullish trend once again. This view is reinforced by the fact that the low of yesterday failed to penetrate the minor support level in place at the 1.59 price point, suggesting that this is now providing a platform for a move higher, which has been confirmed by this morning’s price action during the London session. No doubt the UK pound has been helped to some degree by the failure to oust our beloved leader by his own party, who continues to cling to power at all costs! Should we see prices close the session above all three moving averages once again, then we can safely assume that the bullish trend has been re-established once again, and we could see a possible move back to test the 1.65 price region once again.

The main item of fundamental news for the UK this morning, was the release of housing data by the Royal Institution of Chartered Surveyors, which once again indicated a rising number of new enquires for houses, the seventh month in a row that this has occurred, but overall the market still remains extremely fragile, with the actual number of home sales still very low. The actual figure reported was -44.1% against a forecast of -52%. The only other item of news for the UK was the BRC retail sales figures which showed a fall in May from a year earlier when compared month on month with the ‘big ticket’ items still continuing to suffer. Attention now switches to the US, and I have covered the main items for you on the euro dollar 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.