Pound Dollar Daily Currency Chart - GBP/USD Chart 29th April 2009

Pound Dollar Daily Currency Chart - GBP/USD Chart 29th April 2009

Yesterday’s candle simply reinforced my view that trading in the pounds to dollars pair would be extremely difficult as the day ended with an exact replica of the previous day other than in this case the body of the doji closed slightly higher.   With three consecutive doji candles on the daily chart this epitomises the current “trend” for the pounds to dollar pair which at best can be described as indeterminate and at worst shambolic.  Today’s price action which saw the pair attempt to break from its shackles of indecision has promptly failed as dollar strength pushes cable back down once again towards the 9 and 14 day moving averages.  With prices still emeshed in the moving averages there is little we can do other than look to trade other pairs unless and until we see a firm break above 1.5 or a break below 1.38.   My trading suggestion for today is continue to stand aside and wait for the FOMC rate decision later today which inject some momentum into this pair.  A quick look at the weekly chart gives us even fewer signals or a sense of direction.  However, once all the fundamental news on today’s economic calendar has been released and absorbed maybe we will be able to trade this pair.

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