pounds to dollars forecast

Pounds to Dollars Chart 23 Sep 2010

The pounds to dollars pair continues to limp and lurch higher but with precious little conviction as evidenced by yesterday’s candle which closed as a small shooting star, testing the USD1.57 price area for the second time in 4 days. ¬†Indeed this picture appears to be replicated once again in trading so far today with the pair failing to breach this level as it trades at USD1.5661 at time of writing. ¬†However, despite this the pounds to dollars pair continues to hold above all four moving averages and with the 9 day now about to cross the 40 this may give us a bullish signal as a result thereby adding some conviction to the bullish picture. The short term issue remains the USD1.57 price level and if we see a clear break and hold here then this should provide an interim platform for a further leg up to re-test the high of early August at USD1.5998 in due course.

Today’s fundamental news for the pounds to dollars included the mortgage lending figures which came in lower than expected and this afternoon we have the unemployment claims in the US which are expected to remain flat together with existing homes sales which are forecast to come in 208k higher than last month’s 4.11m.