Pounds To Dollars - Daily Candle Chart 12th February 2009

Pounds To Dollars - Daily Candle Chart 12th February 2009

Following our excellent signal of Tuesday we saw a wide spread down candle yesterday as I suggested on the pounds to dollars chart, so I hope you followed my suggestion to short the market. If you have your positions open today, then I would suggest you leave these in place, move your stop losses down to lock in your profits, and continue with the short position as I expect the move to continue today. Initially yesterday the GBP USD pair moved higher on the unemployment figures being slightly better than expected, but then promptly fell on the statement from Mervyn King who used the word ‘deep’ which shocked the markets and sent the pound lower against the US dollar, and against the euro. Yesterday’s price move penetrated all three moving averages, adding weight to the downwards trend.

Unlike yesterday there is no UK fundamental news today, so the main focus of attention will be in the US, with Core Retail Sales, Retail Sales and the Unemployment numbers due later- details of these can be found on the euro to dollar site.

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