Dollars To Pounds - Daily Candle Chart 13th September 2009

Dollars To Pounds - Daily Candle Chart 13th September 2009

Forex Technical Analysis

A strong week for the pounds to dollars pair last week, ended on Friday with a relatively weak signal, with the daily chart closing the trading session with a small shooting star candle, suggesting that we may see the gbp/usd forex market reverse in Monday’s trading session as a result. Overall, last week’s mini rally pushed the currency pair back above the strong resistance level at the 1.66 price handle, but whether the close of 1.6653 is sufficient to provide the necessary cushion to any reversal, only time will tell. With the apparent breakout now complete, and with the 9 day now crossing above the 14 day moving average, this is adding to the bullish picture. However, with many forex analysts and market commentators now suggesting that we may see a sharp rally in  the US dollar and a change in sentiment this week, then this would naturally signal a consequent fall in the dollars to pounds pair as a result, confirming the short term bearish signal of Friday.

Fundamental Forex Analysis

There is little fundamental news on the economic calendar for Monday, with none in the UK, and only a series of speeches scheduled in the US, the most significant of which is that by President Obama, and all concerned with various aspects of the recent financial crisis, so will no doubt be eagerly watched by the forex markets for any hidden signals as to future monetary and fiscal policy.

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.