Pounds To Dollars Currency Pair - Forex Chart GBP/USD

Pounds To Dollars Currency Pair - Forex Chart GBP/USD

Friday’s wide spread down bar in the pounds to dollars pair merely confirms once again the anaemic status of the UK pound which continues to thrash about in the 1.60 price region as it desperately tries to find some traction and extract itself from the mire of Mervyn King’s “helpful” comments which are proving to be decidedly unhelpful to poor old Sterling.  Under normal circumstances the currency markets generally fail to have any memory lasting longer than a few hours but on this occasion Gov King’s comments seem to be lingering like a bad smell and the bearish nature of the pounds to dollars pair is likely to continue to for some time with a deeper fall to 1.50 now increasingly likely.  All this against the backdrop of chronic and systemic dollar weakness.  Friday’s candle breached both the 9 and 14 day moving averages which are now turning lower and with little meaningful resistance below the current price of 1.5843 there is clear run between here and a platform in the 1.52 price region.

With a national holiday in the US for Columbus Day and no items of fundamental news on the economic calendar for the UK Monday’s trading will be characterized by a series of random price moves, unless of course Gov King decides to intervene in the currency markets with yet more “helpful” comments.

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