Pound vs Dollar - Daily FX Chart 30th April 2009

Pound vs Dollar - Daily FX Chart 30th April 2009

This morning’s price action in the pounds to dollar pair epitomizes the current aimless mood of the current market with a classic bull trap sucking in traders and then promptly spitting them out on the way down, and if today’s price action holds then we will almost certainly see a move lower in the next few days.  Cable bulls will simply have to accept that only a weekly close above 1.50 will signal the start of a decent rally and until that happens the sideways consolidation will continue unabated which present good trading opportunities for intra day swing trading as we are likely to see in the next few days with an almost certain reversal following today’s move.   With May Day holidays in a number of countries tomorrow and on Monday we can be certain of one thing, thin markets leading to even more random moves.

Items of fundamental news on the economic calendar for the British Pound have included the Nationwide HPI (House Price Index) which came in marginally better than expected at -0.4% indicating that house prices are still falling despite last month’s glimmer of hope.  While the latest fundamental news for the US  is covered in detail on the euro dollar site a couple of interesting results which may give markets some hope include the Chicago PMI which came in at 40.1 against a forecast of 35 and unemployment numbers dropping to 631k against a forecast of 639k, hardly stellar but the markets are determined to seize on any small nugget of hope.   My trading suggestion is to wait until tomorrow to see if today’s candle holds as a shooting star then to look for short positions intra day in the 15 and 30 min charts and, as always, using a tight stop loss and aiming to take profits off the table as quickly as possible.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.