Pound to Dollar Chart 19 Jan 2010

The pounds to usd pair continues to trade in a relatively wide range which we have come to know and love over the past few months oscillating back and forth between USD1.59 at the lower level and USD1.68 at the upper level.  At present we are in an upwards move first signalled by the reversal two weeks ago and with daily prices now having broken above all three moving averages this minor up trend looks set to continue until we hit once again the upper band of the current range.  Yesterday’s up candle confirmed this bullish flavour with the low of the day finding good support from the 40 day moving average and with all three moving averages now pointing higher this rally looks set to continue until we meet the potential resistance area above once again.  At some point we will, of course, see a breakout from this trading pattern but until any break is meaningful the current price action for the pounds to dollars pair is set to continue in sideways mode for the next few weeks.

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Support & Resistance for Pounds to USD : (Daily Chart)

S1:   1.6282     R1:   1.6388

S2:   1.6212     R2:   1.6424

S3:   1.6176     R3:   1.6494