GBP/USD Daily Candle Chart - 24th March 2009

GBP/USD Daily Candle Chart - 24th March 2009

With a slight breakout above the falling wedge pattern of the past few months cable is once again making a concerted effort to move higher.  However, many of the candles are characterized by long upper shadows which are not suggestive of a strong bullish move and clearly indicates a market that is struggling to maintain momentum under difficult conditions.  Whilst the bears are not completely in control they are certainly there in evidence and it would not take much for see this particular rally snuffed out.  My current views remain unchanged particularly as we are now running into heavy congestion ahead and for any long term trading opportunities on the bullish side we will need to see a sustained break above 1.5155 and preferably a move back above 1.55.  This is not to say there are no trading opportunities, clearly there are, but the longer term tone of this pair is still downward and it would be a great surprise to see a return to a bearish move in the short term.  For this pair I would only advocate small intra day trades.  As an example how difficult it is to trade this pair at the moment the last 4 hours this morning has yielded alternating up and down bars, one after the other within a tight 40 pip range.

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