Pound vs Dollar - Daily Candle Chart 28th July 2009

Pound vs Dollar - Daily Candle Chart 28th July 2009

As the sideways drift of the last few weeks continues, it is increasingly difficult to find anything new to say about cable, either on an intra day basis or indeed longer term, with yesterday’s candle adding once again to the congestion in this area. As I have said many times before, unless we see a break and hold above the 1.66 level, accompanied with significant momentum, then until this occurs we need to look for trading opportunities in other pairs. Many of the majors are following a similar pattern at present ( in particular the euro vs dollar) so my advice would be to look to some of the crosses, in particular currency pairs such as the euro yen, pound yen and aussie yen.

The main item of fundamental news on the economic calendar for today is the CB consumer confidence index, due for release in the US later today. This is a sentiment index ( but one of the more important ones) and is forecast at 49.1 this afternoon. The only other item of news this morning was the release of the CBI Realized Sales, which came in worse than expected at -15, confirming that retail sales fell for the third month in a row. Today rounds off with a series of speeches by Treasury Secretary Geithner and Fed Chairman Bernanke, but given the damp squib of last week, it seems unlikely that these speeches will provide anything in the way of hints on policy changes moving forward, so the prospect of any breakout from the current trading range seems remote at present. For the time being we have to wait and be patient.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.