Pound Dollar Chart 20 Nov 2009

Pound Dollar Chart 20 Nov 2009

Friday’s wide spread down candle on the pound dollar chart confirmed with some authority, the three bar bearish candle pattern that we outlined earlier in the week with the up candle of Monday, followed by the doji candle of Tuesday, and the down candle of Wednesday completing the pattern. This was duly confirmed on Thursday and further emphasised on Friday with the pounds to usd  pair ending the week lower once again and, unfortunately, back into the deep price congestion area of the last few months. Last week’s price action would suggest that the recent move higher was once again a “fakeout”, rather than a breakout, and therefore a false move similar to that which occurred in August.  With the pounds to usd pair closing the week at 1.6501, this places the pair firmly below the upper level of the price trend at 1.6650, and therefore the upper price band has now become potential resistance to any recovery and a move higher. The only question that now remains is whether the 40 day moving average will act as a break and prevent any deeper move lower, and ironically we may well see this occur with the currency pair bouncing higher once again as a result in the short term.

There are no fundamental news items for Sterling and only Existing Home Sales for the US later in the afternoon we can expect some random and unpredictable prices moves in this pair today.

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.

Support & Resistance for Pounds to USD :

S1:  1.6477    R1:  1.6515

R2:  1.6455    R2:  1.6531

R3:  1.6439    R3:  1.6553