Pounds to Dollars Daily Chart 3 August 2009

Pounds to Dollars Daily Chart 3 August 2009

As with the Eurodollar, so with the pounds to dollars pair and there is only one to trade in the short term which is to the bull side.  Friday’s wide spread up bar finally gave us both momentum and a much needed trading signal with prices finally breaking out of the sideways consolidation of the last two months and now looking set for a significant push higher.  This has already happened in the London session this morning with the consolidation now providing an initial platform, with all three moving averages pointing firmly higher.  This picture is confirmed on both the weekly and monthly charts and the next price level as an initial target is the interim resistance in place at the 1.75 region so there should be some nice profits to be made over the coming days and weeks.  All items of fundamental news on the economic calendar for the US are covered in the main euro to dollar site while for the UK the only item this morning has been the manufacturing PMI data which came in better than expected at 50.8 against a forecast target of 47.7, nudging above the pivotal 50 level which represents the crossover between contraction and expansion which helped Cable to move higher.  However, the main driver for the British Pound still remains the level of risk sentiment within the general market which at present is still firmly bullish.

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.