Pound Dollar Chart 25 Nov 2009

Pound Dollar Chart 25 Nov 2009

The pounds to usd pair continues to trade in the 1.66 price region and until we see a firm breakout ( as we saw yesterday with the euro vs dollar pair) then the current sideways price action seems set to continue for some time. Whilst yesterday up bar breached the 9 and 14 day moving averages, this event carries little significance technically as these indicators have less weight at present given the sideways price action of the market. With the continued and remorseless decline of the US dollar we should see a break to the upside in due course, which is confirmed to some extent by the depth of clear water to the 40 day moving average which sits below, but until we see a break and hold above the 1.70 price level, then we must be patient and wait for the chart to signal the longer term direction. Today of course is a national holiday in the US for Thanksgiving, and as a result we may seem some volatile price action in thin market trading conditions, which may well continue tomorrow as traders take an extended break until Monday, so expect to see some odd price moves today.

The only significant item of fundamental news for the UK today will be the CBI Realized Sales data due out at 12.00 noon GMT.  This is diffusion index based on a survey of both retailers and wholesalers and as such is a leading indicator of consumer spending.  The forecast figures if for 12 – up from previous.

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Support & Resistance for Pounds to USD :

S1:  1.6611    R1:  1.6770

S2:  1.6519    R2:  1.6837

S3:  1.6452    R3:  1.6929