Pounds To Dollars Today - Daily Chart January 28th 2009

Pounds To Dollars Today - Daily Chart January 28th 2009

The bullish engulfing candle we discussed on Monday, was indeed confirmed yesterday, with a further move up and a nice wide bar, and as of this morning, the trend is continuing, with the 9 day moving average having been breached and the 14 day average now firmly on the horizon. The main issue of course is the strong resistance at the 1.4500 region, and for any move to continue, we need to see this area penetrated. My suggested strategy for today is therefore to attempt small long positions, but with stops carefully placed, probably in the 1.3700 – 13750 region in case of any sharp pullback. This might come on the back of any news from the FED funds rates and FOMC minutes, due for release later today in the US – details of this can be found at the euro to dollar site.

The short term is bullish, the medium to long term is bearish