GBP/USD Candle Chart - Daily 18th March 2009

GBP/USD Candle Chart - Daily 18th March 2009

Today news that unemployment in the UK has passed the 2m mark, a number not seen since the dark days of the 1970s did add some downward pressure to today’s pounds to dollars pair following the indecision of the doji candle yesterday.  The bearish tone now seems to be reestablished (aided by further news from the IMF that the UK’s recession may be longer and deeper than other countries) is underpinning the strong triangle pattern which has been forming since October 2008.  Whilst it is tempting to simply enter short position with little thought the current picture is still far from convincing as, in my view, the pair are still structurally unstable.  On a personal level I am waiting for a break below the 1.3700 – a level not seen since 2001 and earlier.

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