Daily Forex Chart Analysis - Pounds To Dollars 26th August 2009

Daily Forex Chart Analysis - Pounds To Dollars 26th August 2009

Forex Technical Analysis

Yesterday’s candle for the pounds to dollars pair, provided an interesting discussion point for today’s forex technical analysis for the pair, as the narrow spread down bar closed the forex trading session well below all three moving averages, and more importantly deep into the support area immediately below, giving the chart a bearish flavour once more. The most important aspect of yesterday’s trading was the breach of the 1.6350 support level which until now has provided a strong platform for any re basing. With this level now broken we may finally see a reversal of Cable, and a possible strengthening of the US dollar, with the next critical level being that at 1.60. In many ways this is even more significant and any breach here could signal the end of this long period of sideways consolidation at this trading level, with a much deeper move lower in due course, although it would come as no great surprise to see this level hold once again and propel cable higher once again!

Fundamental Forex Analysis

With no fundamental news for UK sterling on the economic calendar today, all the news is in the US and I have covered all the main items in more detail on the euro vs dollar site for the US market.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.