Dollar to Pounds - Currency Exchange Rates 4th August 2009

Dollar to Pounds - Currency Exchange Rates 4th August 2009

Yesterday’s wide spread up bar which temporarily kissed the 1.70 level gave a strong bullish signal following Friday’s breakout which confirmed that the sideways consolidation of the last 2 months is now well and truly behind us.   The price action yesterday was given additional impetus by the gapped up open of the early morning suggesting once again that the current bullish sentiment may have some “legs”.  Trading today has been relatively quiet as traders bank profits and the market takes a breather and with little fundamental news on the economic calendar market players are waiting for Thursday’s MPC rate statement and interest rate decision in the UK.  This is closely followed, of course, by non farm payroll on Friday.  With all three moving averages now pointing higher my trading suggestion is to buy on any pullbacks on an intra day basis and with the move fully supported by growing volume in the futures market we could see an attack on the 1.75 price level in due course.

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