Pound Dollar Daily Candle Chart - 17th March 2009

Pound Dollar Daily Candle Chart - 17th March 2009

Aside some minor economic data released today and a speech by Mervyn King, Govenor of the Bank of England there is no other significant economic news from the UK today with the focus primarily in the US.  I have covered this news in my euro to dollar site.   Yesterday’s price action was typical of the last few months characterized by a volatile move up in the morning session only for prices to retrace in the afternoon leaving us with a weak signal of bearish sentiment with the high of the day bouncing off the 40 day moving average.  This bearish tone has continued in this morning’s trading with prices now firmly established back in amongst the moving average spaghetti, as the long and tortuous downward decline of the pound to dollar pair continues.   Yesterday’s candle would suggest that the move down is likely to continue.  If you are feeling brave then by all means attempt small short trades although it may be best to wait until some energy returns to this particular pair.

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