pounds to dollars

Pounds to Dollars Chart 23 Aug 2010

The pounds to dollars pair continues to slide lower but contained in a relatively narrow range with the 9 and 14 day moving averages to the upside and the 40 and 200 averages to the downside.  Friday’s price action initially tested both the 40 and 200 day moving averages below, both of which held firm, suggesting that cable is not yet ready to break lower.  However, the technical picture still suggests that a break to the downside is likely, particularly given the series of upper wicks to all of last week’s candles which clearly indicates a market that is weak.  For such a move to be confirmed we need to see a break and hold below the 40 and 200 day moving averages and this would coincide with a breach of the USD1.54 price area which also coincides with a potential support region.  However, once clear of this minor support expect to see a steeper fall for the pair with an initial re-test of USD1.5241, followed by a break below USD1.4948 in due course.

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