 Hello and welcome to the chart of the week video with me David Madden. Today's date is Wednesday the 19th of September And the time has just gone 10 58 for this summer time. This week's chart of the week is the pound versus the US dollar And taking a look at the big picture Sterling has been losing ground versus the US dollar for a number of months now since since April But we have seen a fairly decent bounce back in the pound versus the US dollar of the last month or last For for four and a half weeks or so Take a look at the price action Since the middle of August you can see that the market has been as in moving higher and that the market actually today On the back of solid inflation figures from the UK hit a level not seen since late July The market's been pushing higher in recent sessions And if you take a look at the MACD indicator the MACD Instagram, we can see this Those in a solid in a steady increase in positive momentum. So as the market's been pushing higher The the rate of positive momentum has been increasing. So the momentum is with the buyers So we can be more confident that this upward move in the pound is going to continue And if you do see that the pound continue to make round versus the US dollar We could be looking at targeting this region here in around the one spot 3250 area We've seen a fair bit of consolidation in the price area In of the last number of months and if we go beyond the one spot 3250, we could be looking at targeting this area here The early July high which comes into play in at one spot 3361 And if you go up to if you take on that level, we could be looking at it back towards this price here The early June high and that comes into play at one spot 3472 Now as I was saying that the pound's been in a fairly decent upper trend versus the US dollar for the last Four weeks or so, but if you do see a bit of a pullback in the pound We could see support coming to play in around this area here This blue line here the 15th moving average which comes to the play at one spot 2986 So but also that's just south of the psychology board one spot 30 area So support may be found in at one spot 30 or one spot 2986 that region could act as a fairly decent area of support Notice how as the market was pushing higher in late August It ran into a bit of resistance at the this blue line here This blue line here the 15th moving average and then once the market got above that that should actually manage your active support So a fairly good example of old resistance acting as new support So and if the market is active as support in a recent past it may do so again in the near future and even if you do Drop below the 15th moving average this area could be an also potential area for support Which comes into play at one spot 2859 and south of there break below that could then point us down towards The early September low of one spot 2785 I think I have a break below that we could be a little bit back down towards the August low at one spot 2661 If you go south of that That will be putting us back to a levels not seen for over a year And that would be actually quite bearish for the terms of outlook But moving away from the actual the actual the price action on the charts The economic indicators of the UK I wish to be fairly positive recently only today We saw inflation in the UK jumped to 2.7 percent from 2.5 percent as the headline figure And actually even the core figure jumped to 2.1 percent up from 1.9 percent It's actually fairly decent Level of demand from the UK in terms of the political front and regarding brexit The e appear to be soft in your stance. Michelle Barney appears to be more accommodating in terms of his negotiating stance in relation to the Independent deal that is to be struck between the UK and the European Union So traders are seeing this the softer approach from mr. Barney as a Sign that is willing to actually do a deal And if you are going to be trading the pound versus the US dollar Please keep an eye on the Fed reserve that the US central bank are meeting next week And the markets are probably pricing in a high probability of an interest rate hike and the Update that will that will be accompanied by the interest rate decision will also be closely watched because it is also fairly high Markets of chance in a recently high probability of the December rate hike from the Fed reserve to If you've any commentary on this video or any of the other videos we've made here at CMC markets Please feel free to leave a review on Google reviews, and that's all for me this week. Thank you very much