Pounds To Dollars - Daily FX Chart 28th April 2009

Pounds To Dollars - Daily FX Chart 28th April 2009

The pound dollar continued its remorseless sideways price action yesterday, grinding out a narrow channel between 1.45 and 1.47 and neatly sandwiched between the 9 and 14 day moving averages above and the 40 day moving average below, and showing absolutely no sign of any clear direction in the near future.   Cable did manage a mild boost this morning on the back of better than expected CBI sales data which came in at a positive 3 whilst the market was expecting -40 (so much for analysts forecasts and opinion polls!).  This data is generally considered a leading indicator suggesting that consumers are increasingly looking to spend their way to happiness rather than wait for any good news from either politicians or the financial industry.  This sentiment of spending your way to happiness seems to be catching on as in the US  the CB Consumer Confidence figures which have just been released, also came in at a healthy 39.2 against a forecast of 29.6.  This data too is considered a leading indicator and is based on a survey of around 5000 households.

My trading suggestion for today is as per yesterday which is to stand aside and wait until we see a clear trading signal in the daily or weekly chart and one that is preferably supported by some or all of the moving averages.  Any trading in the pounds to dollars pair at the moment is fraught with danger.   Although we may see a breakout tomorrow following the FOMC meeting this may still be insufficient to give us a clear sense of direction.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.