pounds to dollars

Pounds to Dollars 20 Aug 2010

A similar technical picture for the pounds to dollars pair is now being established mirroring that of the euro vs dollar on the daily chart, with the two currency pairs correlating positively once again.  In the last six days we have seen cable consolidate sideways with the 200 day moving average providing support to the downside and the 9 day moving average capping any rally to the upside.  Yesterday’s price candle was identical to that of Wednesday with a narrow body and deep upper wick, clearly indicating bearish sentiment for the pair, and the only platform preventing a collapse being the 200 day moving average.  Whilst the euro vs dollar has already broken out we now await the pounds to dollars pair to follow suit and in this case we need to see a break and hold below USD1.5417 which will then clear both the 200 and 40 day moving averages simultaneously.  Once complete expect to see cable move sharply lower to initially test support at USD1.5241, followed by a break below USD1.5138 and, if both these levels are breached, then a move below USD1.50 and beyond seems increasingly likely.  The 9 day moving average is now deep below the 14 day moving average and should this cross below both the 40 and 200 day then this will add further weight to the move.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Time is running out for the West