Pound Dollar Chart 25 Nov 2009

Pound Dollar Chart 25 Nov 2009

The pounds to usd  pair traded in a narrow range yesterday, ending the session marginally lower on the day and with a small shadow to the lower body, all of which tells us very little, other than we are back in a period of sideways consolidation once again, stuck in the 1.60 to 1.70 trading channel. With Thanksgiving now round the corner, the trading week could fizzle out across all the markets this week and it seems unlikley that we will see any change in the current sideways price action in the short term. Longer term we have to wait for a break above or below the current price consolidation region, and which direction this will take is very difficult to forecast at present, and with two false breaks already, one could argue that the eventual direction will be lower – but this is far too early to say at this stage, For the time being swing trading or intra day trading are the best solutions with a straddle option strategy for the longer term.

The only significant item of fundamental news for sterling has been the revised GDP figure which came in as forecast at -0.3% confirming that the UK is still in recession.  Meanwhile this afternoon sees a raft of data for the US – all of which is covered on the eurodollar site.

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 :