Pounds To Dollars - Daily Candle Chart 24th July 2009

Pounds To Dollars - Daily Candle Chart 24th July 2009

The pounds to dollars pair continue to flirt with the 1.66 price level, testing and retesting before falling back to close at a lower level, with yesterday’s candle yet another in a series of failed attempts to clear this level, closing with a deep upper wick and narrow body. This price level is now pivitol for the currency pair, and only a clear break and hold above will be seens as confirmation that Cable is likley to continue to strengthen against the US dollar. Until this occurs then we have to wait, and for any sustained move lower we need to see a break and hold below the 1.60 price handle. Until then – we have to wait I’m afraid!

The principle item of fundamental news on the economic calendar this morning for Cable, was the relase of the quarterly GDP figures which came in worse than expected at -0.8% against a forecast of -0.3%. Whilst the contraction in the economy was worse than expected is was certainly better than last quarter’s -2.4% , but still taking the annual decline to 5.6%. While an improvement on the previous quarter, the figures may indicate that the recovery could take longer than previously had been expected so the Brown/Darling dream team will have to wait for their special brand of fertiliser to produce the green shoots!!! In the US< the markets are now waiting for further testimony from Fed Chariman Ben Bernanke,who is due to testify, along with Treasury Secretary Timothy Geithner and Federal Deposit Insurance Corporation Chairman Sheila Bair, on regulatory restructuring before the House Financial Services Committee, in Washington DC.

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.