GBP/USD - Dollar vs Pound Daily Candle Chart 19th June 2009

GBP/USD - Dollar vs Pound Daily Candle Chart 19th June 2009

An interesting week for the pounds to dollars pair on the daily chart with yesterday’s candle once again suggesting that the British Pound still remains in the ascendancy against the US Dollar for several reasons.  Firstly the low of the day closed on the 9 day moving average which once again seemed to be providing support to an upwards move.  Secondly the candle closed with a deep lower wick again indicative of any move by the bears being promptly squashed by Cable bulls.  Thirdly the 9 and 14 day moving averages have failed to cross despite touching earlier in the week and are now positioning themselves for a supportive move higher.  Finally the 40 day moving average is pointing firmly higher and with all these factors combining it seems likely that we will see a further rally in due course.  All these elements must be counterbalanced against the critical resistance now in place at 1.66 and should we see any breach of this level, and a weekly close above, then we can assume that the sideways movements of the last two weeks was merely the market taking a breather in readiness for a further push higher.

With no fundamental news on the economic calendar either for the UK pound or for the US Dollar markets today are focusing on the “triple witching” in the options markets helped by traders squaring positions ahead of the weekend.  Next week sees the FMOC meeting which will, no doubt, inject some life into the markets.

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.