Pounds To Dollars - GBP/USD Daily Forex Chart 7th September 2009

Pounds To Dollars - GBP/USD Daily Forex Chart 7th September 2009

An interesting week for the pounds to dollars forex pair, which ended the week marginally higher following the two bar reversal on Wednesday, with Friday’s trading session ending rather flat following the Non Farm Payroll data which failed to excite the markets, who were no doubt already looking forward to the long weekend in the US for Labor Day. The candle on the daily chart, ended as a small narrow spread up bar, breaking marginally above the 14 day moving average, but with all three moving averages now very closely grouped, these indicators have little value at present. The key for Cable forex traders, is whether the pair can break back above the 1.66 price level, or whether this is now a barrier that will remain unbroken. If so, then the longer term trend for the pair will be down, but perhaps only as far as the 1.60 price level, where a line of strong support awaits, and indeed we may see a period of swing trading opportunities in this price region over the next few weeks, before a breakout occurs as expected.

With the US markets closed, the only items of fundamental news on the economic calendar for the pounds to dollars pair is in the UK, in what is otherwise a very quiet day. The HPI data is the only schedules release, and is forecast to show that that house prices in the UK rose a modest 1% slightly less that last time, but since this will be based on August’s data, hardly a surprise for the forex market.

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