Pound Dollar Chart 16 Nov 2009

Pound Dollar Chart 16 Nov 2009

Another solid perfomance for the pounds to usd yesterday, with the currency pair breaking higher once again and, more signifcantly, holding above the recent minor potential resistance level in the 1.6750 region, suggesting that we may now see a sustained move higher in due course, a trend that will be established once the 1.70 top has been cleared. With all three moving averages now providing solid support ( as evidenced by the 9 day moving average yesterday which held the low of the day), the outlook for the pounds to dollars pair is looking increasingly bullish, but as always we need to have one eye on the fakeout last time around for any signs of a repeat performance!

The most important item of fundamental news for sterling this morning was the CPI data which came in at 1.5%, slightly higher than the 1.4% forecast and pointing to the first rise in UK inflation in 8 months.  Meanwhile among the raft of second tier releases for the US the market will be focusing on PPI and the TIC Long Term Purchases – both of which I have covered on the main euro dollar site.

Support & Resistance for Pounds to USD:

S1:  1.6712     R1:  1.6921

S2:  1.6585     R2: 1.7003

S3: 1.6503     R3:  1.7130

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