Pound to Dollar Chart 4 Nov 2009

Pound to Dollar Chart 4 Nov 2009

The pounds to dollars pair ended yesterday’s trading session with a wide spread up candle which although reinforced the hammer candle of Tuesday, provided little in the way of a longer term clue to the direction for the pair, since the high of the session failed to breach the all important 1.6650 region once again, suggesting that the broader sideways consolidation for the last few months is set to remain in place for a further period. Whilst the support from the 9 and 14 day moving averages was a positive signal, the failure to breach the above level was a negative one, so a mixed analaysis once again, and until we see a clear break and hold above the price level outlined above there is little more to say technically for the pounds to dollars pair, and the only way to trade Cable at present is either on a short term intra day basis, or alternatively with a straddle strategy using currency options, waiting for the breakout which will undoubtably occur in due course.

R1:  1.6621    S1:  1.6423

R2:  1.6708   S2: 1.6312

R3:  1.6819    S3: 1.6225

Today’s fundamental news on the economic calendar for the UK is not only dominated by the MPC interest rate decision but also the details of the Asset Purchase Facility and the amount the BOE is likely to pump into the economy which is forecast to be in the region of a further £50bn.  This contraversial and untested scheme has so far not delivered any discernible results as the UK is still languishing in the deepest recession since the 1930s.  Meanwhile in the US the most important item of news will be the unemployment claims – which I have covered on the 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