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Forex Trading, Market News & Technical Analysis

After a Brief Downdraft, Sterling Rallies Again

Posted by WorldWideMarkets . on Sep 11, 2013 3:29:00 AM

Sterling/dollar or cable makes a golden cross on Tuesday as the 50-day simple moving average at 1.5386 climbs above the 100-day simple moving average at 1.5384. Golden crosses occur when a shorter-term moving average crosses and climbs above a longer-term moving average and is said to lead to a considerable uptrend in the price.

 But sterling also went overbought for a second day with a 14-day exponential relative strength index print of 73.972 so it won’t all be smooth sailing and the most recent death cross, the inverse of a goldn cross, in the same two averages occurred around August 22. The pound did sell off briefly but the upward momentum appears just too strong for now. A large technical trading target is  1.5750 but watch out for Thursday's testimony to Parliament's Treasury Select Committee by BoE Governor Mark Carney. Carney is still too new in the new job to know exactly what he will and won’t say. trading cable


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