pounds to dollars

Pounds to Dollars 2 Sep 2010

The pounds to dollars pair continues to trade in a narrow range but with a bearish bias and despite yesterday’s modest rally the tone remains negative for cable.  Yesterday’s attempts to rise appears to have been capped by the 200 day moving average which also came into play in today’s forex trading session with the 9 day adding further downwards pressure.  With the 14 day average now crossing below the 40 this is providing us with a clear bearish signal and provided we see a break and hold below USD1.5326 then the bearish momentum is likely gather pace and push the pair lower to re-test USD1.52 in due course and thereafter USD1.4948.  Tomorrow’s non farm payroll may throw a spanner into these technical works and if, as expected, the US dollar suffers then cable should break higher in the short term before resuming its longer term downwards trend.

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Forex trading reaches almost $4,000bn per day! Sterling is the currency on one side of more than 6 per cent of forex trades (measured by value), according to Tuesday’s study from the Bank for International Settlements.