Home » Pounds To Dollars Daily Chart » Pounds To Dollars – Currency Chart 25th September 2009

Pounds To Dollars – Currency Chart 25th September 2009

Pounds To Dollars - Daily Currency Chart 25th September 2009

Pounds To Dollars - Daily Currency Chart 25th September 2009

A defining day technically yesterday for the pounds to dollars pair, with sterling taking a real battering in the market with a double whammy of a sudden reversal in the fortunes of the US dollar ( although this seems unlikely to last long ) coupled with a sell off in the pound following comments from BOE Governor Mervyn King who once again stressed that a weak UK currency would be helpful to the economy in th short term. As a result the pounds to dollars pair closed yesterday’s trading session with a wide spread down bar which finally breached the floor of the sideways consolidation of the last few months, and with the low of the day below the 1.6000 level for the first time since mid July. With all three moving averages now starting to turn lower, and with the 9 day have crossed below the 14 day moving average signalling a bearish picture, the key to the medium term will be whether the pounds to dollars pair holds below this key technical level in the next few days giving the proximity to the 1.6000 price handle at present. Should we see a further move lower, either today or Monday, then this will simply confirm that the consolidation channel of the last four months has now been broken, and a new trend established in the run to the end of the year. With the next major support level in the 1.5300 price region, much will depend on the US dollar, and whether the minor boost it received yesterday is the start of a longer term change in sentiment, or simply a short term reaction to this week’s meeting and statements. Given the parlous state of the US dollar index which you can find on the currency options trading site, this seems unlikely, since any reversal will require a considerable shift in sentiment to provide the required momentum to break above all the technical resistance on the daily USD index chart. Coupled with this we now have Mervyn King’s comments echoing in the markets, who stated yesterday that “the pound’s weakening value should bolster exports and help tackle the trade deficit” which as a result triggered a 1.5 per cent slide against the dollar to $1.60 and a 1.4 per cent decline against the euro to €1.09. Only time will tell but from a technical perspective, we now need to wait for some clear water below the 1.6000 level to confirm the  new trend for the pounds to dollars currency pair. His comments have not been well received by the other members of the G20, who have expressed their concern and in some cases annoyance which have been considered ‘unhelpful’!!

The main fundamental news on the economic calendar for today is all in the US, and I have covered the main news stories in more detail on the euro to dollar site for you. In the UK the only item of scheduled news is the Revised Business Investment number, a minor indicator, which is forecast to come in at -10.4%, the same as last time. This is a quarterly release which measures the change in the total inflation adjusted value of capital investments made by businesses and the government.

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 where you can trade the pounds to dollars pair.