pounds to dollars

Pounds to Dollars Chart 17 Sep 2010

The pounds to dollars pair appears to have re-established its more traditional relationship with the euro vs dollar, having broken above all four moving averages on Wednesday, following Tuesday’s breakout of the summer’s sideways price drift and consolidation.  Yesterday’s price action was marked by a test to the downside which found good support from the 40 day moving average and, as a consequent, cable has continued to push higher in early trading benefitting from the bearish sentiment towards the US dollar in much the same way as for the euro.  This short term bullish sentiment is also further confirmed by the 9 day moving average which has crossed above the 14 day and should this average continue higher and subsequently cross the 40 average, then the bullish trend could extend further in due course, possibly even to re-test the high of early August at USD1.5994.  Should this be breached then we could see some further probing into the underside of the deep resistance which extends from USD1.60 all the way through to USD1.68.

The only items of fundamental news today are in the US with the core CPI and UoM sentiment data which will almost certainly have an effect on this pair.