Pounds vs USD 4 March 2010

Following Monday’s sharp sell off cable has managed to recover some of the lost ground and is now attempting to crawl back towards the USD1.51 price handle and above.  Technically the outlook for the pounds vs usd pair remains heavily bearish with the daily price firmly entrenched below all four moving averages.  Any attempt to move higher is likely to be short lived and should be seen as an opportunity to open fresh short positions for the longer term downwards trend and indeed Wednesday’s up move was one such opportunity.  Any minor rally is likely to run into stiff resistance both from the moving averages and also from the various layers of resistance now all the way to USD1.60 and beyond.  The interim target in the short term remains USD1.45 and should this be breached then look towards USD1.40 and possibly even lower.

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