Pounds To Dollars - Daily Candle Chart 10th February 2009

Pounds To Dollars - Daily Candle Chart 10th February 2009

Whilst cable moved higher yesterday as suggested, the volatility in the afternoon and evening suggests that the market may be taking a breather today, waiting for the news from Fed Chairman Bernanke later today in the US. On the day we saw  a doji candle with small body, indicating a possible turn today, and we therefore need to be cautious in any intra day trading. With the pounds to dollars pair having moved beyond the resistance area at 1.4500, we are now in a firm uptrend in the short term, with the target in the next few days being 1.5000 and above. If this target is reached then expect to see prices rise to 1.55 in the medium term, where further resistance awaits. With all the moving averages having crossed and the above resistance having been penetrated, then we should see this trend continue in the short term. If you are trading intra day today, then small long positions would be my suggestion, but do bear in mind that with the FED chairman speaking this evening, markets could be extremely volatile, particularly during the question and answer session which follow the prepared statement. More details can be found on the euro to dollar site. There is little other fundamental news either in Europe or in the US.

The short term outllook is bullish, the medium term is bullish and the long term sideways.