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Pounds To Dollars Chart - Daily Analysis 30th September 2009

Pounds To Dollars Chart - Daily Analysis 29th September 2009

After last week’s battering  of the UK pound by the BOE, the pounds to dollars pair made a brave attempt to move higher in yesterday’s trading session, ending the day with a narrow spread up bar, but with shadows to both top and bottom. The price action for the pair was very similar to many other major currency pairs including the euro vs dollar, which all traded in a relatively narrow range in day with conflicting fundamental news – with the UK CBI retail sales figures coming in better than expected, and the all important CB Index falling well short of expectation.  As a result the currency pair traded in a 100 pip range for most of the day, but technically moving higher from the bullish hammer candle of Monday. However, with all three moving averages now pointing sharply lower, and with the deep congestion area now weighing heavily on the pair the outlook for cable in the short term looks bearish. Any move higher would require considerable force to pierce the consolidation region above, and given Mr King’s helpful comments, most currency analysts ( myself included ) now believe that the recent rally is over, and that the pounds to dollars pair will find a platform at a lower level, somewhere between 1.55 and 1.52 in due course.

With very little fundamental news on the economic calendar for today in the UK, all eyes will be on the US markets and the release of the ADP Non Farm data, which is generally considered to be a good guide to Friday’s key Non Farm Payroll numbers released by the Department of Labor which give rise to the monthly jamboree in the forex markets!! Whilst there are a host of other numbers being released tomorrow in the US, these are the most important and will be watched closely by the forex markets for any clues or signals which may confirm whether the US is indeed pulling out of the recession or simply bumping along the bottom.

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.