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Forex Chart Analysis – Pounds To Dollars 14th August 2009

Daily forex analysis for the pounds to dollars pair is at an interesting stage as Sterling continues to claw its way back following last week’s sharp reversal and much like the euro vs dollar we now need to decide whether any break above the 1.67 price level is meaningful or is simply a “fake out” as we saw last time.  With all three moving averages now beginning to bunch once again and with prices constrained between the 14 day and the 40 day moving average there is little meaningful forex technical analysis in the daily chart.  The weekly chart, however, paints a slightly different picture in that last week’s shooting star candle still remains prominently positioned above the sideways consolidation of the last few months.  This week’s trading has failed to confirm this signal as yet, although the conclusion of the week may end with a “hanging man” signal which would confirm, to some extent, the current bearish picture.  However, for a sustained move lower we would need to see a break and hold below the 1.60 level coupled with a breach of the 9 and 14 day moving averages.  The fundamental forex analysis for this pair is focused solely in the US where Core CPI and CPI figures have just been released and have come in bang on target at 0.1% and 0% respectively.  The final piece of fundamental news on the economic calendar for the week is the UOM – University of Michigan Consumer Sentiment which is forecast at 69.1 – happy spending days are here again.  Have a great weekend!

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.