Forex Pound Dollar Chart 27 May 2010

The pound dollar continues to consolidate in the current price area, having found support in the USD1.4250 region as it attempts to struggle higher as a result.  At present both the 9 and 14 day moving averages are presenting significant barriers to any rally, and indeed so far this morning in the London trading session, a rebound in the pound dollar appears to have found resistance at the 14 day average.  The longer term trend for cable still appears bearish and for longer term traders only a break and hold below USD1.42 should signal the start of any trading opportunities to the downside.

The most important item of fundamental news for sterling this morning has been the CBI Realised Sales which were forecast to come in at 13 but which in fact came in far, far worse at -18.   Somewhat surprisingly the data has now dented this morning’s bounce in the pound dollar but we need to exercise caution as this afternoon sees some important US releases.  These include preliminary GDP, expected to come in at 3.5% and the unemployment claims which are forecast at 450K.

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