Dollars To Pounds - GBP/USD Daily Chart 8th May 2009

Dollars To Pounds - GBP/USD Daily Chart 8th May 2009

Laboured progress this week for cable on the daily chart as it continues to flirt, struggle and teeter at the 1.5 price point, with yesterday’s indecisive candle, a classic example, of the bull/bear struggle currently taking place.  As I have said many times before unless and until we see a positive break above this region then we cannot be certain that the dollars to pounds pair has finally broken the shackles and is ready to continue its upwards path.  All three moving averages are suggesting that this will be the case in due course and with the Non Farm Payroll data due for release imminently we may see this move in the market’s first reaction.  However, given that the market expectation is for better than expected numbers and for an improvement to last month’s results then any move higher could be a temporary one.  Other items of fundamental news on the economic calendar for the British Pound were mixed with PPI input data coming in worse than expected at -1% against a forecast of 0.7% whilst PPI output data improved to 0.6% against a forecast of 0.2%.  We now await the NFP data and will review this pair in more details next week with an analysis of the weekly chart.

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