pounds to dollars

Pounds to Dollars Chart 13 July 2010

The pounds to dollars pair continues to cling on at the USD1.50 price region as the daily begins to look increasingly weak, but clearly not yet ready to capitulate. Yesterday’s price action, whilst ending the trading session marginally lower, still evidenced a lingering bullish sentiment, indicated by the depth of the lower wick to the body of the candle.  This has translated into a modest rally in the London trading session but the pair has once again run into resistance from both the 9 and 14 day moving averages which are gradually beginning to exert their influence on the short term trend.  Should this continue in the next few days then expect to see cable break lower, first to re-test support at the 40 day moving average which currently sits at USD1.48, and thereafter to re-test the lows of mid May at USD1.4227 and beyond.

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