Pounds To Dollars GBP/USD - Daily Candle Chart 16th February 2009

Pounds To Dollars GBP/USD - Daily Candle Chart 16th February 2009

Friday’s candle provided yet more evidence that the short term rally of the last two weeks is over, with a doji candle. The upper wick of the candle is extremely long suggesting that the bears overcame the bulls in later trading in the afternoon, with the price closing below all three moving averages once again. With the resistance at 1.4500 now back in place, and a failed attempt to penetrate this level in Friday we should see a fall in the pound dollar pair, and this is a pattern than we have also seen in the weekly candle chart. My suggestion for today is to stay out of the markets as there is a public holiday in the US today, but to look to open positions tomorrow, should we see thin trading condition today. The fundamental news for pounds to dollars is highlighted on the weekly post, along with the news of the US dollar which can also be found there with a weekly economic calendar.

The short term outlook is bearish, the medium to long term is sideways.