Good day traders!

Pound dollar bears have been winning the battle thus far. Negative news from UK and the recent downgrade on UK debt have seen the pair go lower. The fall have been steep and bounces and retracements are shallow.20130227-231252.jpg

There is resistance at 1.5221 that needs to be overcome before more resistance can be seen at 1.5294. Support at 1.50925 needs to hold and if not, we could see the pair going below 1.50.

Stay tuned to this pair. Bears are salivating every time it touches resistance levels and moving averages from below.

Nevertheless, we can see that macd is showing some bullish divergence. So if you are taking short trades, just be careful of that. A correction could be in the works.

All the best to your trading!

~ Ardy
Currency Strategist