Dollar Falls Against Pound
The USD fell against the GBP today after a report showed UK producer-price increases matched figures of 16 years ago.
Last week the pound closed at $2.0134 against the dollar, however, it rose to $2.0194 after the government report was released.
Elsewhere experts predict a bottom to USD decline against the Euro and Yen. Resona Bank Ltd. predicts the dollar won’t decline further than $1.5450 against the Euro and 101.40 against the Yen.
Yen Futures traders and Euro traders are confident of a further decline of the USD against the respective currencies.
Lets take a look at the chart for cable today…
A Look At The Chart
We can see the price is trending in favour of the pound. The price is moving nicely above the 55-day moving average. The price spiked outside the top Bollinger band on open of trading today. I’m a fan of the Bollinger band for getting into trades/predicting direction.
After a peak earlier today we’ve seen a slight decline. Looking at the 23.6% Fibonacci line we can see price movement would need to continue to decline to break this line. However, looking for entry, I will look for price to move as close to 23.6% line as possible, bearing in mind the stochastic shows we are oversold for the pound. This could give us some further profit in cable long positions.
[top]
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
thanks for the post. i hope to listen some more.
Best regards from Sebbi