Weekly Forex Signals

Sterling fortunes look to end as dollar bounces.

Fundamental

The pound fell against the euro and the dollar after the British Chancellor of the Exchequer Alistair Darling unveiled the second bank rescue in three months. The British government will extend a Bank of England program to inject money into the financial system and also proposed insurance to underwrite mortgage-backed debt and toxic assets, Darling said today. Russia’s ruble tumbled after the country’s central bank devalued the currency for the fourth straight day.

Technical

The U.K. currency fails to breaks the strong resistance at 1.4975 and turn back down for a short period of time. Technically the market show us a failure swing pattern which is a clear reversal signal and confirming with couple of indicators like RSI, which is in a bearish direction, MACD crosses the signal line and is pointing downwards, and Bollinger gives us a selling signal by closing the candle below the middle band.

Trends

Primary Tendency (Daily Chart): The primary tendency is in a clear downtrend.

Secondary Tendency (Four Hour Chart): The pair breaks Fibonacci fan first level.

Minor Tendency (Hourly Chart): The Minor trend breaking the strong support level.

Resistance

1.4980
1.4910

Support

1.4465
1.4380

Technical Indicators

Crossing of two moving averages and closing price of the candle is below the short term moving averages.

RSI (Relative Strength Index) giving us a bearish signal.

MACD show us divergences in the market.

Bollinger gives us a bearish signal by closing the candle below the middle band.

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