Pound Dollar Chart 2 Dec 2009

Pound Dollar Chart 2 Dec 2009

There is very little one can say about the pounds to usd pair that hasn’t been said before, with yesterday’s price action symptomatic of a market in sideways consolidation, and ending the trading session with a long legged doji candle, albeit with some support from the 14 day moving average. All the currency markets are now awaiting the NFP data due for release tomorrow in the US, and even the ADP figures released yesterday which came in worse than expected failed to spark any life into the recent trends of many of the US dollar pairs, including the euro dollar.  With the pair continuing to trade within the well developed range there is little else to say, except to wait for a clear break to the upper level of 1.70 for a move higher, or a fall below the 1.59 floor for a move lower.

Only two significant items of fundamental news for Sterling today, the first is the Halifax HPI which measures the change in prices of houses financed by the Halifax Bank of Scotland Group.  The forecast is for an increase in prices of 0.8% – slightly lower than previous.  The other item of news is the services PMI data – a diffusion index which surveys a number of purchasing managers and is considered a leading indicator of the overall health of the economy.  Meanwhile for the US we have a number of tier one releases including the unemployment claims, the non manufacturing ISM numbers and Ben Bernanke’s testimony before the Senate Banking Committe see eurodollar site for more details) – all potentially explosive and giving us lots of trading opportunities.

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Support & Resistance for Pounds to USD

S1: 1.6575   R1:  1.6717

S2: 1.6491   R2:  1.6779

S3: 1.6431   R3:  1.6863