Pound Dollar Chart 30 Nov 2009

Pound Dollar Chart 30 Nov 2009

Yesterday’s attempt to move higher for the pounds to usd pair was promptly snuffed out by the 9 day moving average which provided a barrier to any further move higher, suggesting that the slide in prices is likely to continue in the short term as we await yet more sideways price action in the current price level. In the short term we are likely to see a retest of the 1.6250 price area, and should this be breached then a deeper move back down to the established ‘floor’ of the move in the 1.6000 price region, and should this be reached then we can expect to see a bounce back higher once again. Clearly there is little else once can say about Cable, and until we see  a break from this monotonous trading region, then we are destined for yet more sideways price action in the short term.

The  most important items of fundamental news today for sterling have included the Nationwide House Price Index which has registered a further rise in house prices and the manufacturing PMI figure which has come in far worse than forecast at 51.8 against a forecast of 54.1 – a worrying sign that the pace of any recovery is worryingly slow in the UK.  I have covered the fundamental news for the US on the main eurodollar site.

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Support & Resistance for Pounds to USD :

S1:  1.6358   R1:  1.6571

S2:  1.6263   R2:  1.6689

S3:  1.6145   R3:  1.6784