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GBP/USD – Pound Dollar Weekly Candle Chart 23rd March 2009

Pound Dollar - Weekly Candle Chart 23rd March 2009

Having been unduly punished in the currency markets the British Pound put up a little bit of fight last week and managed to close above the 9 week moving average and just below the 14 week ma but given the range bound activity of the past 5 months it is very difficult to forecast longer term the direction that this pair is likely to take.  Indeed this is reflected in the COT index which I will be publishing later on today making trading the pair a bit of a lottery at the moment. Whilst last week’s candle could be considered bullish engulfing and the open of today’s session is slightly up I would hesitate to suggest that is proof positive of any longer term trend as we are still trading within a slowing downward wedge chart pattern.

The only fundamental news of any significance for today is the speech by Treasury Sec Geithner in which he will be outlining his plans for buying up toxic assets from the banks – a plan akin to buying up rancid chicken, washing it through a saline solution and then passing it off as prime meat!!  Depending on his performance this may lead to further dollar weakness, particularly against the Euro and Japanese Yen but my suggestion for today is to wait and see as tomorrow we have an extremely full day of fundamental news on the economic calendar.

For the latest currency news and live currency charts just follow the appropriate links.  You can also watch video giving latest support and resistance levels for the major pairs.