Pound Dollar Chart 1 Dec 2009
Pound Dollar Chart 1 Dec 2009

More sideways price action for the pounds to USD pair yesterday I’m afraid once again, with Cable moving higher this time, following the hammer candle of Friday last week, and ending the trading session with a wide spread up bar which closed marginally above the 1.66 price handle, but which also seemed to find some resistance from the 14 day moving average at this level. The key level now remains the new top established at the 1.70 price point, and for any meaningful move we need to see this level breached, with a clear break above. Until this occurs we are likely to see further sideways movement for the pair as we continue to thrash about at this level in an unconvincing and tedious manner. There is very little else to add at this stage with the pounds to dollars pair continuing to frustrate and bore in equal measure!!

The only item of fundamental news for Sterling today was the release of the Construction PMI data which came in slightly ahead of expectation at 47 – still below the crucial 50 which is taken as an indication of expansion.  All the US news is covered on the main euro dollar site.

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Support & Resistance for Pounds to USD :

S1:  1.6461    R1:  1.6715

S2:  1.6299    R2:  1.6807

S3:  1.6207    R3:  1.6969