GBP/USD Daily Candle Chart - 4th March 2009

GBP/USD Daily Candle Chart - 4th March 2009

The pound dollar is trading in much the same way as the euro dollar pair at the moment, with a falling wedge pattern, in an increasingly congested range with no firm signals one way or the other, so my advice remains the same – stay out until we see a reversal or a breakout. The moving averages are all extremely congested, and whilst they are suggesting a move lower, until this is confirmed by a breakout from the current consolidation it is too early to say, and any new positions would simply be a guess! So we have to wait for a signal in the daily or weekly chart – sorry!!

The  ADP figures have just been released in the US, coming in worse than expected at 697,000 against a forecast of 620,000 and a previous of 614,000,

The short term and medium term outlook is sideways, the long term is bearish.