pounds to dollars

Pounds to Dollars 24 Aug 2010

The pounds to dollars pair continued to slide lower yesterday ending the forex trading session as a relatively narrow spread down candle as the pair begin to form a falling wedge pattern on the daily chart, which has been extended further in today’s muted price action.  At time of writing the pounds to dollars pair is once again flirting with both the 200 day moving average and the 40 day moving average which are now co-incident and as such any break below here will give us a strong trading signal of a further downwards move in due course.  With only minor potential support in the USD1.54 price region the stage now looks set for a drop, initially to re-test support at USD1.5296 and, thereafter USD1.5219 and below.  The only caveat to this analysis is that tomorrow we may see a small bounce higher given the short term positive sentiment towards sterling as evidenced by the lower wick of today’s price candle, but any short term bounce is likely to run into resistance either at the 9 or 14 day moving average, before the longer term slide lower is resumed.  Longer term our view remains the same, namely that cable is likely to test USD1.50 in due course with a re-test of USD1.4346 further out.

All this week’s fundamental news for the pounds to dollars can now be found on the main forex trading site.

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