Pound vs Dollar - Candle Chart For GBP/USD 9th October 2009

Pound vs Dollar - Candle Chart For GBP/USD 9th October 2009

Yesterday’s price action on the pounds to dollars daily chart, saw the pair struggling higher once again in an effort to break back above the 1.61 resistance level above, a move which ultimately failed with the candle closing the trading session with a deep upper shadow and marginally above the 14 day moving average. Clearly, Cable is finding it hard to recover from the King comments of two weeks ago, and technically the picture remains the same with the pounds to dollars pair desperately trying to find some traction at this level in a bid to break higher and reestablish a position within the consolidation range of the last few months. Whilst yesterday’s move was positive, it does indicate the strength of the resistance above, and in due course the pair will break lower and give up the unequal struggle which is evident at present, despite the apparent support from the 9 and 14 day moving averages.

The main fundamental news on the economic calendar today starts in the UK with the PPI input figures due later this morning, which are forecast at -0.9% against a previous of 2.2%, and which measure the change in the price of goods and basic materials purchased by manufacturers during the period. It is generally considered to be a leading indicator as increases are generally passed directly to the consumer at the retail level, and falls, as are forecast for today, suggest deflationary pressure is still evident in the economy. The figures are considered very important as they are released ahead of the CPI data, generally more familiar to the public, and even more important. At the same time we have the UK Trade Balance data which is forecast at -6.3B against a previous of -6.5B, and later in the trading day we have the same figures for the US, with a forecast of -32.8B against a previous of -32B, suggesting that imports are increasing, a generally good sign for the US economy, suggesting perhaps that the US is beginning to turn the corner.

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.