Pound vs Dollar 27 Oct 2009

Pound vs Dollar 27 Oct 2009

The pounds to dollars pair continued to make a valiant attempt to recover from the heavy selling pressure exerted last week following the GDP data released on Friday, ending yesterday’s trading session with a narrow spread up candle, which closed marginally below the 9 day moving average. Indeed in early trading today, this technical indicators seemed to be playing a pivitol role in preventing any move higher, as the high of the day also found this a barrier to any short term recovery. For Sterling s bulls, this is not an encouraging signal, and would suggest that any recovery may be short lived before we see the pair fall further once again, aided perhaps by a minor resurgance in the US dollar which we have seen in the last few days, evidenced in the US dollar index suddenly finding some traction in the 75 price region. Whilst this is far from any longer term recovery for the US dollar, there is a sense that perhaps sentiment for the US currency is about to change, and if so then we could see the downwards move continue for Cable helped no doubt by the awful fundamental news of last week.

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