Pound Dollar Chart 26 Jan 2011
My post on pounds to dollar pair which is posted on my personal blog. Markets now waiting for outcome of this evening’s FOMC meeting and despite yesterday’s appalling UK gdp figures sterling may in fact bounce back.
Key technical areas: Must break above USD1.5927 which would open way for re-test of USD1.6023
Pounds to Dollars 1 Nov 2010
The positive sentiment following Thursday’s wide spread up bar spilled over into Friday’s forex trading session with cable continuing its recent upwards momentum, breaking and holding above the psychological USD1.60 level to end at US1.6044. On the day, cable recovered from a low of USD1.5876 as dollar weakness resumed once again and the candle created ended with a deep lower wick further confirming the bullish intent, which has continued in early trading this morning and taken cable to USD1.6075 at time of writing. The moving averages below remain firmly supportive of the upwards trend at present and once the 9 day average crosses above the 14 day once again then this will complete the picture as we see cable begin to penetrate the deep resistance now ahead between the current price level and USD1.67. Given the FED meeting where the QE2 is to be unveiled, we can expect to see sustained dollar weakness and a consequent move higher for the British Pound and the momentum generated by this release may be sufficient to propel the pair beyond the upper resistance area at USD1.67.
Pounds To Dollars - Daily Currency Chart 30 Oct 2009
The pounds to dollars pair ended the week with a relatively narrow spread down candle, which once again dampened speculation that the pair were likely to attempt to break out from this prolonged period of consolidation, and ended the trading session balanced neatly on the 9 day moving average. For Cable bulls this is an encouraging signal following the dramatic fall of the previous week following the truly awful GDP data which triggered to move lower. Technically and fundamentally we are at an interesting juncture, with interest rate decisions in the UK, US and Europe all crammed into a busy week with Non Farm Payroll on Friday rounding off what is likely to be a seminal one for the US dollar. The key of-course will be in the wording of all the various statements accompanying the rate decision itself, since it generally agreed that there will be no changes made to any interest rates this week. However, what may change is the wording of the statements, and in the US in particular given last week’s figures that showed the US emerging from recession and into growth once again. Should this view be supported by the FED and also by the NFP figures on Friday, then the FOMC could signal to the markets that US rates may rise sooner rather than later which in turn could swing market sentiment in favour of the US dollar. Should this be the case, then Cable will sell off sharply and we could see re-test of support in the 1.60 price region once again. Technically this is counterbalanced by the support which came on Friday from the 9 day moving average which suggest that we may see a further attempt to rise once again.
R1: 1.6549 S1: 1.6378
R2: 1.6650 S2: 1.6308
R3: 1.6720 S3: 1.6207
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.
Dollars To Pounds - Daily Candle Chart 13th September 2009
Forex Technical Analysis
A strong week for the pounds to dollars pair last week, ended on Friday with a relatively weak signal, with the daily chart closing the trading session with a small shooting star candle, suggesting that we may see the gbp/usd forex market reverse in Monday’s trading session as a result. Overall, last week’s mini rally pushed the currency pair back above the strong resistance level at the 1.66 price handle, but whether the close of 1.6653 is sufficient to provide the necessary cushion to any reversal, only time will tell. With the apparent breakout now complete, and with the 9 day now crossing above the 14 day moving average, this is adding to the bullish picture. However, with many forex analysts and market commentators now suggesting that we may see a sharp rally in the US dollar and a change in sentiment this week, then this would naturally signal a consequent fall in the dollars to pounds pair as a result, confirming the short term bearish signal of Friday.
Fundamental Forex Analysis
There is little fundamental news on the economic calendar for Monday, with none in the UK, and only a series of speeches scheduled in the US, the most significant of which is that by President Obama, and all concerned with various aspects of the recent financial crisis, so will no doubt be eagerly watched by the forex markets for any hidden signals as to future monetary and fiscal policy.
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.
Pounds To Dollars - GBP/USD Daily Forex Chart 7th September 2009
An interesting week for the pounds to dollars forex pair, which ended the week marginally higher following the two bar reversal on Wednesday, with Friday’s trading session ending rather flat following the Non Farm Payroll data which failed to excite the markets, who were no doubt already looking forward to the long weekend in the US for Labor Day. The candle on the daily chart, ended as a small narrow spread up bar, breaking marginally above the 14 day moving average, but with all three moving averages now very closely grouped, these indicators have little value at present. The key for Cable forex traders, is whether the pair can break back above the 1.66 price level, or whether this is now a barrier that will remain unbroken. If so, then the longer term trend for the pair will be down, but perhaps only as far as the 1.60 price level, where a line of strong support awaits, and indeed we may see a period of swing trading opportunities in this price region over the next few weeks, before a breakout occurs as expected.
With the US markets closed, the only items of fundamental news on the economic calendar for the pounds to dollars pair is in the UK, in what is otherwise a very quiet day. The HPI data is the only schedules release, and is forecast to show that that house prices in the UK rose a modest 1% slightly less that last time, but since this will be based on August’s data, hardly a surprise for the forex market.
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.
Daily Forex Analysis - Pound vs Dollar Daily Chart
Forex Technical Analysis
An interesting day for the forex market and the pounds to dollars pair yesterday, as Cable regained virtually all of the loss of the previous day, ending the trading session with a relatively wide spread up bar which closed fractionally below the 9 day moving average. With such a deep and broad resistance area now above, and with all three moving averages now adding further downwards pressure, it seems unlikely that the pound dollar forex pair will be able to reverse the recent downwards trend in the short term, and only a break and hold above the 1.67 price level, coupled with support from all three moving averages would signal any longer term trend reversal. What seems increasingly likely is that the 1.60 price region will now play a pivotal role in the medium term rate for the pound vs dollar pair. Should this level be breached then we will almost certainly see a much deeper move, possibly to re-test support at the 1.55 price point, but alternatively should this support level remain intact, then it may provide the necessary springboard for a further attempt to move higher once again. However the gradual slow decline of the last few weeks seems more likely at present, with such moves punctuated with small rallies.
Fundamental Forex Analysis
The main fundamental news of the UK today was the release of the PMI Services Index which came in better than expected at 54.1 against a forecast of 53.9, adding to the good news which seems to be an increasing feature of all the fundamental news items both in the UK and in the US, with the US forex markets concentrating on the Unemployment Claims and Non Manufacturing data, with the first coming in worse than expected and the second marginally better. Tomorrow of course is all about Non Farm Payroll, and the monthly circus that this creates – no doubt the dust will settle once again on Monday as the markets return to regular trading volumes after the long summer recess.
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.
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