Pounds To Dollars - Pound vs Dollar Chart 1st October 2009

Pounds To Dollars - Pound vs Dollar Chart 1st October 2009

It appears as though the brave attempt to move higher by the pounds to dollars pair was snuffed out yesterday, closing on a   narrow spread up bar, but with a deep upper shadow, leaving us with a bearish signal on the daily chart, and we should expect to see prices fall in due course. This analysis is reinforced by the fact that the high of the day found resistance from the 9 day moving average, another bearish signal, with the price also coinciding with the floor of the recent congestion in the 1.61 price region. With all three moving averages pointing sharply lower, and with Governor King’s comments still adding downwards pressure to the pair, the pounds to dollars pair remains bearish in the short to medium term, and a break to 1.55 initially seems the most likely outcome at present.

A full day of fundamental news on the economic calendar is topped in the US with a speech by FED Chairman Ben Bernanke, who is due to testify to the House Financial Services Committee in Washington. His testimony is usually in two parts with a prepared statement first, which is then followed by a question and answer session which is generally when the currency markets react, as any unscripted answers can often provide clues to future FED policy. The testimony is sandwiched in amongst a raft of other fundamental news in a  very busy day for the US markets, and the key figures later will be the ISM manufacturing data, along with Pending Home Sales – the first is forecast at 53.9 against a previous of -52.9 and the second is 0.9% against 3.2% last time. The major news to end the week is of course the Non Farm Payroll data which comes out tomorrow, and with the ADP results having come out worse than expected yesterday, all eyes will be on this one, to see if the economy really is recovering as hoped for, or continuing to bump along at 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.