Pounds To Dollars - GBP/USD Weekly Chart 8th January 2010

Pounds To Dollars - GBP/USD Weekly Chart 8th January 2010

An interesting view of the pounds to dollars pair on the weekly chart which simply reinforces the desultory trading nature of Cable over the last few months, with the sideways consolidation having started in June last year, and as yet shows little sign of moving out of the current range between 1.67 and 1.58. For longer term trading the technical picture is very clear – a break above the upper level will signal a move to the upside, whilst a break below the lower level will indicate a strengthening of the US dollar. At present the latter seems more likely, and this afternoon’s Non Farm Payroll figures could be the catalyst we have been waiting for, and could inject some momentum into the break lower. The three moving averages tell us little at the moment, other than prices are moving sideways, but should we see a rapid move lower in the first quarter of this year, then once again they will come into play in the technical picture.

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