pound dollar

Pounds to Dollar 6 sep 2010

The pounds to dollars pair continued to trade sideways once again on Friday reversing Thursday’s modest loss and ending the forex trading session as a narrow spread up candle which ran into resistance at the 9 day moving average as a result.  With the current price congestion and the four moving averages closely intertwined, drawing any substantive conclusions from the last four trading sessions is tricky at present and until we see a clear break below the current floor of this congestion at USD1.5326 or a break above USD1.5695 then either of these price points will trigger a strong forex trading signal that a fresh trend is being established.  If the move comes to the downside then this will add further momentum to the already established bearish trend and should signal a deeper fall to re-test support, initially at USD1.5227 followed thereafter by USD1.4948 in due course.  This is my preferred analysis but should the breakout come to the upside, which seems unlikely, then any move above USD1.5695 will open the way to re-test USD1.60 where the previous rally ran out of steam in early August.

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

Fears of further QE weigh on sterling.