With Nowotny’s comments now a dim and distant memory the $uros to poundsr rallied yesterday recovering some of the losses directly attributable to his off message remarks, with the close of the day finishing well above both the 9 and 14 day averages which are now crossing, suggestive of a move higher once again.   This outlook is partially confirmed by the bullish engulfing signal of this time last week but for any sustained move higher we will need to see a break above the 40 day moving average before any such trend reversal can be confirmed.  It is interesting to note that both Monday’s and Tuesday’s candles hit the same low suggesting the possible start of a tweezer bottom formation based on the existing support first created in mid to late March.   Given this scenario and the lack of any meaningful $undamental newsthe economic calendar for the pair my suggestion for today is to wait and only to buy into the market should we see prices move above 0.9025 which will then provide the additional support to any breakout higher.

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