GBP/USD - Daily Candle Chart 30th March 2009

GBP/USD - Daily Candle Chart 30th March 2009

The bearish momentum that was evident on Friday with a wide spread down bar closing just above the 40 day moving average, has continued this morning in early trading with a move lower with the daily price now firmly established below all three moving averages.  One of the most interesting points to make this morning is that the opening price was gapped down significantly from the close on Friday by about 60 pips suggesting that this move is likely to continue during the week, and until we see any sign of a short term reversal.  The reversal from this morning’s low was due largely to new mortgage approvals coming in better than expected at 38k which is hardly significant in the economic climate but given the lack of fundamental news on the economic calendar for today any news is likely to give the market some impetus.

Technically we are now entering an important area of support at the 1.4175 region and for any move lower we will need to see this broken and, if so, by a deeper move back to retest the lows of 1.37 as seen earlier in March.  My suggestion for today is move any stop loss on existing short positions lower to lock in profits and if you are looking to re-enter the market with a new short position look to sell on any reaction higher, which is happening at the moment, at the current price of 1.4200 or above.

The remainder of the day is very quiet on the economic calendar but the week livens up with a host of economic news both in the UK and US all topped off with the G20 and non farm payroll numbers on Friday.  You can keep up to date with all the live news, latest currency news, live currency charts and the latest fundamental news by following the appropriate link, and if you are looking for an excellent ECN broker I have provided details as well.