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Pounds To Dollars – 3rd March 2009

Pounds To Dollars - Daily Candle Chart 3rd March 2009

With the wide spread down bar from yesterday, I’m sure many retail traders jumped in this morning and went short, only to have been stopped out in the rally towards the end of Asia and the London open this morning. As I said yesterday, this is one to stay out of for the time being, as the pair are now deeply unstable in my view, and with no clear signals, trading in the GBP/USD is a lottery at the moment. All that can be said is that daily prices are now below all three moving averages once again, and the balance of probability would suggest a move lower, rather than higher at this stage, but personally I would stay out, until we see a clear signal in the weekly chart to indicate a confirmed move one way or the other.

Both these currencies will be volatile this week, with interest rates in the UK and Europe, Bernake speaking to the Senate this afternoon, and the monthly circus called Non Farm Payroll on Friday. The good news is that any of these fundamental news stories may inject some direction into the pair. In addition this afternoon we have Pending Home Sales figures in the economic news, adding to the mix, and full details are available on the latest currency news videos, the economic calendar, or on the live news feed.