Pounds to Dollars Chart 20 Oct 2009

Pounds to Dollars Chart 20 Oct 2009

The pounds to dollars pair found it hard work yesterday to make any further progress higher, ending the trading session with a small doji candle, which could signal that the recent rally is beginning to run out of steam, and as a result we may see a correction lower ( or even a turn) in the short term. Whilst all three moving averages are providing good support, the strong resistance level at 1.67 remains firmly  in place above the current price point, and for any rally to be sustained, this level will have to be breached in due course. Whilst the US dollar continues to decline, UK sterling has its own problems and as a result has failed, thus far, to benefit in the last few weeks from the dollars fall. Whether this counterbalance continues will no doubt play out in the next few weeks, as technically we now wait to see whether the current rally has run its course for the pounds to dollars pair.

The only item of fundamental news on the economic calendar for Sterling was the release earlier today of the MPC minutes which showed a unanimous decision to hold interest rates at 0.5%.  Details of the fundamental news for the US can be found on my main eurodollar site.  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.