Pound vs Dollar - GBP/USD Daily Candle Chart 13th July 2009

Pound vs Dollar - GBP/USD Daily Candle Chart 13th July 2009

Many of the major currency pairs are currently trading in a consolidating sideways range, largely dictated by the broader market fundamentals and as a result the appetite, or otherwise for risk.  This in turn is reflected in the currency markets by the price action (or lack of) in the Dollar Index and here again we have seen several weeks of lacklustre sideways movement.  Trading the currency markets can be likened to a battle where long periods of boredom are punctuated with frenetic, intense and explosive activity and one of the most difficult things to learn in trading is patience.  At times like this we must remain patient and wait for a clear trading signal which may indicate that prices are on the move.   Friday candle on the daily forex chart for the pounds to dollars pair merely confirmed, once again, this sideways inactivity and with the three moving averages now converging there is no meaningful analysis to be drawn from these technical indicators.  The only signal of the past few weeks that is clear and unambiguous is the shooting star at the end of June which remains dominant above this consolidation region.  Any break below 1.59 and a hold will confirm this signal as valid and for this to be confirmed we need to be patient.

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