Dollars To Pounds - GBP/USD Daily FX Chart 7th May 2009

Dollars To Pounds - GBP/USD Daily FX Chart 7th May 2009

Despite the bearish signal of Tuesday this was not confirmed during Wednesday’s trading with the daily candle on the dollars to pounds chart ending the day on an up bar but one which closed below the high of the previous day.  With all three moving averages pointing higher the currency pair are still teetering on the edge of the 1.50 barrier, and in this morning’s trading despite a fresh attempt to break away from this region, the fundamental news including interest rate decision in the UK and US economic data has promptly squashed the British Pound forcing it back from its intra day high of 1.52.  If this bullish trend is to continue we need to see a breakout with sustained momentum, rather than the weak sideways stumbling that we are witnessing at present which suggests that the move could peter out at any point.

The weekly chart paints a similar picture with the current price sandwiched between the 40 week moving average above, and the 9 and 14 week averages below, but again the predominant movement is sideways and consolidatory in nature, although one could argue that this is now creating a saucer shaped bottom as a precursor to a move higher in due course.  My trading suggestion is to trade intra day with a bias to the long side using tight stops and taking any profits as quickly as possible.

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.