Home » Pounds To Dollars Daily Chart » Forex Pounds to Dollars 16 Nov 2009

Forex Pounds to Dollars 16 Nov 2009

Pound Dollar Chart 13 Nov 2009

Pound Dollar Chart 13 Nov 2009

A very similar technical picture for the pounds to USD  pair as with the euro vs dollar, in that the moving averages seem to hold the key to the longer term picture, and in the case of the latter pair it is the 40 day average that is the key indicator, whilst for Cable, it is the 9 and 14 day averages which are the seminal indicators at present. This was once again demonstrated on Friday the 9 day average providing solid support to the narrow spread up candle, as we approach, once again, the 1.67/1.68 potential resistance area, which has proved to be an stubborn obstacle to overcome. Only a clear break and hold above this deep area of price congestion will now signal that any bullish momentum has been confirmed, and for longer term trend trading we need to wait for clear water below before entering any long positions on a buy and hold basis. Whilst all three moving averages are pointing higher, it would be no surprise to see yet another failure at this level, with a consequent and prolonged period of sideways price action to follow as a result.

There is no fundamental news on the economic calendar for the UK today other than speeches from two members of the BOE.  Meanwhile in the US the most important items of news will be the Core Retai and Retail Sales which are expected to come in at 0.4% and 1.0% respectively along with a speech from Fed Chairman Ben Bernanke in New York at 18.15 GMT.  His speech is on the economic outlook for the economy and will be followed by a question and answer session which will, no doubt, lead to a degree of market volatility.

Support & Resistance for Pounds to USD:

S1:  1.6593   R1:  1.6728

S2:  1.6514   R2:  1.6784

S3:  1.6458   R3:  1.6863

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