pounds to dollars

Pounds to Dollars Chart 16 Aug 2010

Friday’s narrow spread down candle made it five consecutive losing days for the pounds to dollars pair, having failed to breach the psychological USD1.60 price level last Monday.  Indeed as we suggested two weeks ago the recent bullish momentum for the pair appeared to be running out of steam at this level which was evidenced by the price action of last week.  Friday’s close ended well below the 9 and 14 day moving averages but above the 200 day and 40 day and should the former of these hold then expect to see the pounds to dollars pair recover and regain some lost ground later during the forex trading week.  However, we need to note that the 9 day moving average is now crossing below the 14 day moving average giving us a short term bear cross signal and we need to be cautious in any trading to the upside if this signal is validated either today or tomorrow.  The key, however, remains the 200 day moving average and any breach here could signal a deeper move to re-test support in the USD1.5440 area or below.

All this week’s fundamental news for the pounds to dollars pair can be found at my main forex trading site.

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