Pounds to Dollars - Daily Chart For GBP/USD 9th September 2009

Pounds to Dollars - Daily Chart For GBP/USD 9th September 2009

Forex Technical Analysis

Unlike the euro vs dollar, the pounds to dollars pair remains relatively waterlogged, continuing to consolidate below the USD1.66 price level with yesterday’s up candle attempting to breach this level but falling just short once again.  Technically the candle found support from the 14 day moving average and closed the forex trading session marginally above the 40 day moving average suggesting that we may see a further attempt to break out of this level and to follow the Eurodollar higher.  Only a break and hold above this price point will confirm this view and it will come as no great surprise should we see a failure here once again.

Fundamental Forex Analysis

Owing to the Labor Day national holiday in the US there is little fundamental news on the economic calendar for either the US Dollar or Sterling.  The crude oil inventory data is due for release tomorrow and we only have the Beige Book data later today.  Meanwhile in the UK the only item of any signficiance was the Nationwide Consumer Confidence Data, a composite index based on a survey of around 100 consumers, which came in at 63 against a forecast of 62 suggesting that the UK may be climbing out of recession.

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