GBP-USD: Recovery Fading

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (fxtechstrategy.com) -- The pound-dollar currency pair's recovery is now fading, suggesting it could return to the 1.5270 level, its October 2011 low.

If GBP-USD breaks that level, it will next aim at the 1.5235 level. A cut through there would extend the declines toward the pair's 0.618 Fibonacci retracement at 1.5187 (1.4229-1.6736 rally).

Further down, GBP-USD's big psychological level of 1.5000 comes in as the next downside target.

Alternatively, the risk to this analysis will be a violation of the 1.5406 level. This would clear the way for a move toward the 1.5770/1.5779 levels. If the pound-dollar trades through this zone, it will trigger further strength toward the 1.5885 level, its Nov. 18 high.

On the whole, GBP's downside vulnerability remains intact despite its current attempt at recovering.

-- Written by Mohammed Isah.

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