Pound Dollar Chart 19 Nov 2009

Pound Dollar Chart 19 Nov 2009

Yesterday’s down bar merely served to emphasize once again the unconvincing nature of the current move higher for the pounds to usd pair, with the trading session ending with a wide spread down candle, which merely confirmed the three candle bearish pattern with the hanging man neatly sandwiched in the middle.  Indeed this pattern has already been confirmed in early trading with Cable breaching the 9 and 14 day moving averages, despite the apparent support for the low of the day yesterday.  As Stertling bulls try to continue to lurch higher, the key level for technical chartists remains the 1.70 price level, and whilst we have a considerable depth of price congestion and therefore potential support below,  it can still be said that the the longer term the outlook still remains bullish, provided the above price handle can be breached. The current reversal we are seeing today may simply be a further short term move lower – more likely caused by the awful public sector borrowing figures which came in at almost double expectation at 11.4bn & worse than expected retails sales –  before we see a further run higher in due course, and technically the depth of support below should provide the necessary platform for a push higher in the medium term once again.

Among the fundamental news items in the US we have had the the unemployment claims which came in at 505k – slightly worse than the projected 503k and the Philly Fed which came in much better than expected at 16.7.

Support & Resistance for Pounds to USD:

S1: 1.6686    R1:  1.6817

S2:  1.6635   R2:  1.6897

S3:  1.6555   R3:  1.6945

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to
help you with your forex trading – so good luck and good trading.