Dollars To Pounds - GBP/USD Daily Chart 27th May 2009

Dollars To Pounds - GBP/USD Daily Chart 27th May 2009

The dollars to pounds pair continues to flirt with the 1.60 price point with yesterday’s candle adding to the indecision and sideways movement of the last 3 days.  Indeed on the daily chart it is interesting to note that both Friday’s candle of last week and Tuesday’s of this week are indicative of weakness in the bull rally as both are suggestive of a “hanging man” pattern.  This morning’s price action in the pound to dollar has followed a similar pattern with indecisive price action, and a failed attempt once again to break and hold above the 1.60 price level.  With the continued geopolitical uncertainty in the background, both the currency and commodity market are uncertain as to how to respond to the unfolding situation and in many ways are trying to decide whether to take the North Korean threat seriously or simply continue with dollar weakness and increasing commodity prices respectively.

With little in the way of fundamental news on the economic calendar either for the British Pound or the US Dollar other than BBA mortgage approvals in the UK which came in worse than expected, and Exisiting Home Sales due out this afternoon in the US, my suggestion is to step aside and wait for a decisive move one way or another.

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.