Pound Dollar Daily Candle Chart - 9th February 2009

Pound Dollar Daily Candle Chart - 9th February 2009

Following the bullish engulfing candle of the 26th of January, we have seen the pound dollar pair rise since then, and Friday was no exception with a move above the 40 day moving average which now gives us an excellent buy signal on the daily chart. In addition, the move has added weight as prices are now breaking through the resistance level of 1.4800 and above, and if this move continues then we should see a move back towards the 1.5000 region and above. I opened a position this morning and am currently trading this pair. The fundmental news is explained on the euros to pounds site for the UK pound and on the euro to dollar site for the US dollar.

My suggestion for today is therefore small long positions with a stop loss below the 1.4500 region.