pounds to dollars

Pounds to Dollars Chart 14 Sep 2010

The pounds to dollar pair continue to trade in a relentless narrow, sideways range, bounded to the downside at USD1.5326 and USD1.5533 to the upside, with yesterday’s trading action once again confined to this price zone.  Yesterday’s attempt to rise by sterling was promptly squashed during the afternoon session with the forex trading session ending as a narrow spread down candle but with a deep wick to the upper body of the candle.  Overhead the 40 day moving average continues to exert pressure to the downside and only a break and hold above the current level of USD1.5551 will give any signal that this present sideways consolidation is likely to break down.  To the downside any move below USD1.5326 will indicate a continuation of the recent bearish picture and should this occur, as expected, look for a re-test at USD1.5241 where further price congestion and potential support awaits and, if this is breached, then the downside to this region awaits at USD1.4948 in due course.  This morning’s inflation data for the UK all came in worse than expected with CPI at 3.1% & core CPI at 2.8%, both exceeding their respective forecasts of 2.9% and 2.6%.  Some minor turbulence on the minute chart for the pounds to dollars pair which saw an initial move to USD1.5374, followed by a reversal to USD1.5442 and a subsequent move lower to USD1.5413 at time of writing as the bearish bias is re-established.

Gov King may need to write again to UK Chancellor Osborne