Pound Dollar Chart 26 March 2010

Another weak day for the pounds to USD pair which closed yesterday’s trading session lower with a narrow spread down candle but one with a deep shadow to the upper body suggesting further selling pressure on the British Pound.  We are now approaching the key support level at USD1.48 which we outlined in a our previous market commentary and should this be breached then we can expect to see a deep and sustained move lower with USD1.45 the short term target moving towards USD1.40 in the longer term.  The catalyst for such a move could be a downgrade of UK debt coupled with continued uncertainty regarding the election which also coincides with sustained dollar strenth, with the dollar index now having broken through resistance in the 81 price area.

With very little level one economic news either in the UK or the US today we can expect a day of desultory trading ahead of the weekend.

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Pounds to USD News :

Sterling still set to fall

Is US debt at saturation point?