Pounds to Dollars Chart 9 Nov 2009

Pounds to Dollars Chart 9 Nov 2009

A significant day yesterday for the pounds to dollar pair on the daily chart, as we finally saw the long awaited breakout above the 1.67 price region, which delineates the upper region of the potential resistance area, which of course now becomes a potential support region for the expected move higher.  Whilst this is a positive signal, we did of course see the same price action back in August earlier in the year, when the breakout was eventually confirmed as a false breakout with the pounds to dollars pair breaking down and lower back into the congestion area once again. It is quite possible that we may see the same price action repeated once again this time, with a break and hold above the 1.67 price level, suggesting that this break is real, and not false. With all three moving averages providing good support and with the low of the last few days bouncing off the 9 day moving average, the signs are good, but as always we need to be cautious and wait for the move to develop in due course.

There have been a number of second tier items of fundamental news on the economic calendar for the UK this morning including the BRIC retail sales data which came in stronger than expected at 3.8% with stores posting their best October sales growth since 2002.   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.

S1: 1.6645    R1:  1.6878

S2: 1.6514     R2: 1.6980

S3: 1.6412     R3: 1.7111